Want Want China (151) H1 2025 earnings summary

Executive summary

• Revenue for 1H FY25 increased by 2.1% year-over-year to RMB 11,108 million, driven by strong sales in emerging and specialty snack retail channels, while in 1H FY24, revenue declined 3.5% to RMB10,876.6 million due to lower popsicle sales.

• Gross profit margin improved to 47.3% in 1H FY24 due to lower raw material costs, while in 1H FY25, gross margin decreased by 110bps to 46.2%.

• Net profit attributable to equity holders rose 7.6% to RMB1,863.4 million in 1H FY24, but fell 7.8% to RMB1,717 million in 1H FY25.

• Channel diversification, rapid growth in e-commerce, instant retail, and overseas markets supported performance.

• Organizational restructuring enhanced agility and resource allocation for sustainable growth.

Financial highlights

• Gross margin at 46.2% in 1H FY25 (down 110bps), and 47.3% in 1H FY24 (up 2.1 pts); operating profit declined by 11.0% to RMB 2,261 million in 1H FY25, but increased 2.6% to RMB2,540.7 million in 1H FY24.

• Net profit attributable to equity holders was RMB1,717 million in 1H FY25 (down 7.8%) and RMB1,863.4 million in 1H FY24 (up 7.6%).

• Operating expenses rose 10.6% year-over-year in 1H FY25, while distribution costs fell 7.2% and administrative expenses rose 2.8% in 1H FY24.

• Net cash position was RMB 10,321 million as of September 30, 2025, and RMB9,094.1 million as of September 30, 2024.

• Total borrowings were RMB 4,666 million in 1H FY25 and RMB6,330.8 million in 1H FY24, all short-term with 98% at fixed rates.

Outlook and guidance

• Focus on channel refinement, brand differentiation, product innovation, and marketing diversification to drive future growth.

• Management expects continued benefit from lower raw material costs and plans to enhance organizational agility.