Want Want China (151) H2 2025 earnings summary

Executive summary

• Revenue for FY24 was RMB 23,511 million, a slight decrease of 0.3% year-over-year, mainly due to declines in popsicles and gift pack revenues impacted by weather and market environment.

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

• Gross margin improved by 1.0 percentage point to 47.6%, driven by lower costs of major raw materials and packaging.

• 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 5,837 million.

• Net cash position increased to RMB 11,283 million as of March 31, 2025, up RMB 627.6 million from the prior year.

• Inventory turnover days improved to 74 from 81, reflecting enhanced supply chain efficiency.

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

• Final dividend proposed at 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.

• Continued focus on OEM, content e-commerce, and product innovation to drive future growth.

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

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