Want Want China (151) H2 2024 earnings summary

Executive summary

• FY24 revenue was reported at RMB23,586.3 million, with performance driven by dairy, beverages, and double-digit growth in emerging and overseas channels; some sources note a slight 0.3% decrease due to declines in popsicles and gift packs, offset by other segments.

• Gross margin improved, with figures reported at 47.6% (up 100bps) and 46.6% (up 2.7 pts), mainly due to lower raw material and packaging costs.

• Profit attributable to equity holders increased, with figures of RMB4,336 million (+8.6%) and RMB3,990.5 million (+18.4%) reported.

• Channel diversification, especially in emerging and overseas markets, contributed double-digit revenue growth.

• Cash generated from operations and net cash position both strengthened, reflecting improved working capital efficiency.

Financial highlights

• Operating profit increased, with figures of RMB5,837 million (+4.1%) and RMB5,609.8 million (+15.7%) reported.

• Net finance costs dropped 52.2% due to lower offshore RMB borrowing expenses.

• Inventory turnover days improved, with figures of 74 (down 7 days) and 81 (down from 90) reported.

• Net cash position rose to RMB11,283 million and RMB10,655.2 million as of March 31, 2025.

• Cost of sales decreased by 2.0% YoY, mainly due to lower unit costs for palm oil, paper, and tinplate.

Outlook and guidance

• Plans to expand in emerging channels and overseas markets, leveraging product diversity and production capacity.

• Focus on OEM and content e-commerce for future growth.

• Emphasis on new product launches, digital marketing, and further supply chain optimization.

• Gross profit margin for dairy products and beverages expected to improve further in 2024 due to lower milk powder costs and tariff adjustments.