Uni-President Enterprises (1216) Q3 2024 earnings summary

Executive summary

• Operating revenue for the first nine months of 2024 reached TWD 499.798 billion, up 15.2% year-over-year, driven by strong food and beverage sales, retail expansion, and the inclusion of Carrefour Taiwan.

• Net profit attributable to the parent company was TWD 17.53 billion, with EPS at 3.09, up from 2.95 year-over-year.

• Operating profit and gross profit reached record highs, with 17 consecutive quarters of revenue growth and 7 consecutive quarters of gross margin improvement.

• Major acquisitions, including Yahoo! Taiwan Holdings Limited and Kuan-Chan Enterprises Corp., expanded digital and distribution capabilities.

• All business segments reported revenue growth, with notable contributions from F&B, retail, and packaging.

Financial highlights

• Accumulated operating profit for the first nine months was TWD 28.79 billion, up 19% year-over-year.

• Pre-tax net profit was TWD 35.48 billion, down 15.92% year-over-year due to one-time gains last year; excluding these, pre-tax profit rose 19%.

• Q3 consolidated revenue grew 8.4% year-over-year and 10.4% quarter-over-quarter, with gross profit up 10.6% year-over-year.

• Gross margin improved to 33.06%, up 0.4 percentage points year-over-year, and operating margin reached 5.76%.

• Cash and cash equivalents stood at TWD 102.2 billion as of September 30, 2024.

Outlook and guidance

• Continued focus on product innovation, channel expansion, and marketing to drive growth in China’s competitive beverage and instant noodles markets.

• Ongoing investments in logistics, sustainability, and digital transformation, with targets to reduce GHG emission intensity by 1.5% per year and cut emissions by 38% below 2005 levels by 2030.

• 7-Eleven Taiwan targets a net addition of 200–300 stores annually, with ongoing development of hybrid store formats.

• Tinplate and beverage packaging businesses are expected to grow, with cautious optimism due to steel market volatility.

• E-commerce investment in Yahoo Taiwan positions the group for digital economy growth.