Want Want China (151) H2 2024 earnings summary

Executive summary

• FY24 revenue reached RMB 23,511mn, a slight decrease of 0.3% year-over-year, mainly due to lower popsicle and gift pack sales impacted by weather and market environment.

• Profit attributable to equity holders increased by 8.6% year-over-year to RMB 4,336mn, with margin up 1.5 percentage points to 18.4%.

• Gross profit margin improved by 1.0 percentage point to 47.6%, driven by lower raw material and packaging costs.

• The company restructured business units by product category, driving growth in the second half, especially in dairy and overseas markets.

Financial highlights

• Operating profit rose 4.1% year-over-year to RMB 5,837mn.

• Net cash position increased to RMB 11,283mn, up RMB 627.6mn from the prior year.

• Inventory turnover days decreased by 7 days to 74, reflecting improved supply chain and working capital efficiency.

• Capital expenditure rose 56.4% to RMB 634.6mn, mainly for plant upgrades and capacity expansion.

• Final dividend proposed at USD 241mn (US2.04 cents per share), down from US3.30 cents last year.

Outlook and guidance

• Plans to further expand and develop diversified emerging channels and enhance organizational agility.

• Focus on mitigating raw material cost risks through diversified sourcing.

• Continued investment in automation, supply chain optimization, and overseas expansion.