Foshan Haitian Flavouring and Food Company (603288) Q2 2024 earnings summary

Executive summary

• Achieved revenue of RMB 14.16 billion in H1 2024, up 9.18% year-over-year; net profit attributable to shareholders reached RMB 3.45 billion, up 11.52% year-over-year.

• Core products (soy sauce, oyster sauce, sauces, vinegar, cooking wine) maintained leading market share; soy sauce and oyster sauce remain national leaders.

• Maintained strong brand influence and continued investment in R&D and digitalization to support product innovation and channel expansion.

• No major changes in business model or profit structure; continued focus on high-quality, sustainable growth.

Financial highlights

• Revenue: RMB 14.16 billion, up 9.18% year-over-year; net profit: RMB 3.45 billion, up 11.52% year-over-year.

• Gross margin for food manufacturing: 38.63%, up 1.18 percentage points year-over-year.

• Basic and diluted EPS: RMB 0.62, up 10.71% year-over-year; ROE: 11.85%, up 0.44 percentage points.

• Operating cash flow: RMB 1.13 billion, down 56.45% year-over-year, mainly due to timing of prepayments for Spring Festival inventory.

• Net assets attributable to shareholders: RMB 28.02 billion, down 1.78% from year-end 2023.

Outlook and guidance

• Management expects continued industry competition and evolving consumer demand; will focus on product innovation, channel reform, and digital transformation.

• Plans to further expand production capacity, invest in R&D, and enhance ESG and sustainability initiatives.