Want Want China (151) H1 2026 earnings summary

Executive summary

• Revenue for 1H FY25 grew 2.1% year-over-year to RMB 11,108 million, driven by strong sales volume, new product launches, and rapid growth in emerging channels.

• Profit attributable to equity holders declined 7.8% to RMB 1,717.4 million, with margin down 1.6 percentage points to 15.5%.

• Gross profit margin fell 1.1 percentage points to 46.2% due to higher costs for imported whole milk powder and palm oil.

• Operating profit dropped 11.0% year-over-year to RMB 2,260.7 million, with operating margin at 20.4%.

• New products launched in the past five years contributed a mid-teen percentage of total revenue, becoming a key growth driver.

Financial highlights

• Revenue: RMB 11,108 million (+2.1% YoY); Gross profit: RMB 5,131.7 million (-0.2% YoY).

• Operating profit: RMB 2,260.7 million (-11.0% YoY); Net profit: RMB 1,717.4 million (-7.8% YoY).

• Basic and diluted EPS: RMB 14.55 cents (-7.8% YoY).

• Gross profit margin: 46.2% (-1.1ppt YoY); Operating margin: 20.4% (-3.0ppt YoY); Net margin: 15.5% (-1.6ppt YoY).

• Operating expenses rose 10.6% to RMB 3,202 million, with both administrative and distribution costs increasing as a percentage of revenue.

Outlook and guidance

• Multi-pronged strategies will continue, focusing on channel refinement, brand differentiation, product innovation, and marketing diversification.

• Organizational agility and efficiency improvements are targeted to better respond to market changes.

• Continued investment in product R&D, channel expansion, and creative marketing to drive sustainable growth.

• Plans to further expand overseas, especially in Vietnam, and accelerate e-commerce and new retail deployment.