Want Want China (151) H2 2025 earnings summary

Executive summary

• FY25 revenue rose 3.8% year-over-year to RMB 24,401mn, with all major segments growing and new products contributing a mid-teen percentage of revenue.

• Specialty Snack Retail and Emerging Channels were key growth drivers, offsetting declines in traditional channels.

• Profit attributable to equity holders declined 11.5% to RMB 3,837mn due to higher input costs and expenses.

• Channel diversification, product innovation, and overseas expansion supported robust performance.

Financial highlights

• Gross margin declined by 1.3 percentage points to 46.3% due to higher input costs, especially whole milk powder and palm oil.

• Operating profit fell 14.0% year-over-year to RMB 5,021mn, with margin dropping to 20.6%.

• Operating expenses increased 14.2% to RMB 6,891mn, driven by higher A&P and staffing costs.

• Basic and diluted EPS dropped to RMB32.51 cents.

• Dividend payout ratio decreased from 40% to 30%, with a proposed final dividend of RMB 1,153mn.

Outlook and guidance

• Continued focus on channel diversification, digital transformation, and organisational refinement to drive growth.

• Dedicated business units to optimize products, marketing, and channel strategies for enhanced competitiveness.

• Plans to strengthen channel structure, invest in R&D, and enhance brand value through creative marketing.

• Management expects continued optimisation of supply chain and production, with attention to raw material price trends.