IFBH (6603) H1 2025 earnings summary

Executive summary

• Revenue rose 31.5% year-over-year to US$94.5 million for the six months ended 30 June 2025, driven by strong coconut water sales in mainland China and new product launches.

• Gross profit increased 15.3% to US$31.8 million, but gross margin declined to 33.7% from 38.4% due to unfavorable currency movements.

• Adjusted net profit increased 13.9% to US$18.9 million, while reported net profit declined 4.8% to US$15.0 million, mainly due to non-recurring listing-related professional fees.

• Mainland China remained the largest market, with significant revenue growth also seen in Hong Kong, Taiwan, and Australia.

• No interim dividend declared for the period.

Financial highlights

• Revenue from coconut water rose 33.3% year-over-year, accounting for 96.9% of total revenue; other beverage revenue increased 57.2%, while plant-based snacks revenue dropped to zero as focus shifted to flagship products.

• Gross profit: US$31.8 million, up 15.3%; gross margin fell to 33.7% from 38.4%.

• Basic EPS: US$0.067, down 9.5%; adjusted basic EPS: US$0.084, up 7.7%.

• Cash and bank balances reached US$164.1 million, up 199.4% from end-2024, reflecting IPO proceeds.

• Selling and distribution expenses rose 48.4% to US$3.4 million, while marketing expenses decreased 8.1% to US$3.5 million; administrative expenses surged 122.9% to US$6.1 million, mainly from listing-related costs.

Outlook and guidance

• RTD soft drink market in Greater China expected to grow at 7.1% CAGR to US$194.7 billion by 2029; coconut water segment forecasted to grow at 19.4% CAGR.

• Global RTD soft drink market projected to grow at 6.1% CAGR, with coconut water at 11.1% CAGR through 2029.

• Business strategies focus on expanding sourcing, innovation, market presence in China and abroad, brand building, and strategic alliances or acquisitions.

• Industry outlook remains positive, supported by health trends, rising incomes, and expanded distribution.