Uni-President China (220) H1 2026 earnings summary

Executive summary

• Revenue for 1H26 reached RMB 17,321 million, up 1.4% year-over-year, with net profit rising 9.0% to RMB 1,402.4 million.

• Gross margin improved to 35.0%, and EBITDA rose 7.5% year-over-year.

• Food business revenue grew 4.7% to RMB 5,633.8 million, while beverage revenue declined 0.3% to RMB 10,751.1 million.

• Segment performance showed stable food revenue and mixed beverage results, with tea and milk tea leading beverage sales.

• New product launches in both food and beverage categories focused on branding, innovation, and quality.

Financial highlights

• Gross profit rose 3.4% year-over-year to RMB 6,066 million, and operating profit increased 9.5% to RMB 1,805 million.

• EPS grew 9.0% to 32.47 RMB cents; ROE improved by 0.8 percentage points to 10.6%.

• Cash and cash equivalents stood at RMB 13,792 million as of June 30, 2026.

• Net cash flows from operating activities were RMB 926.7 million, while capital expenditure was RMB 488.4 million in 1H26.

• Selling and marketing expenses increased by RMB 166.4 million to RMB 3,939.2 million, mainly due to higher promotional and transportation costs.

Outlook and guidance

• The company expects increased uncertainties in the Chinese economy in the second half of 2026 but anticipates resilient economic growth.

• Focus remains on high-value, health-oriented, and differentiated products, with continued investment in product quality and consumer experience.

• Forward-looking statements indicate a continued focus on innovation and product development, with caution regarding risks and uncertainties.