H&H International Holdings (01112) achieved an increase in the number of units in the first six months compared to the same period last year

According to the Zhitong Finance App, H&H International Holdings (01112) announced that for the six months ended June 30, 2025, according to similar comparison standards, the Group's total revenue increased by about the same period last year, mainly driven by growth in all business segments (including adult nutrition and care products, infant nutrition and care products, and pet nutrition and care products).

For the six months ended June 30, 2025, according to similar comparison standards, the Adult Nutrition and Nursing Products segment achieved medium unit revenue growth, mainly driven by the double-digit increase in the segment in mainland China and continued strong growth in other expanding markets. The segment's continued growth is mainly driven by growing consumer demand for beauty, anti-aging and detox products, as well as continued growth in the Group's innovative categories such as Swisse Plus+, Little Swisse, Smart Melts and Swisse Magnesium Glycinate. With its leading position in e-commerce, Swisse currently ranks first in the overall vitamin, herbal and mineral supplements market in mainland China. During the 618 online shopping festival in 2025, Swisse achieved a considerable increase in total product turnover, ranking first among e-commerce platforms such as Tmall, JD, Douyin and Vipshop in the nutritional supplement category. Revenue growth in the Adult Nutrition and Care Products segment was also driven by strong sales growth in the Group's expanding markets in Asia, including Hong Kong, Thailand, Malaysia, India and the Middle East.

For the six months ended June 30, 2025, the revenue of the Infant Nutrition and Care Products segment regained its growth momentum, achieving a low year-on-year increase in units. In the Infant Nutrition and Care Products segment, infant formula sales achieved a high year-on-year increase as the Group continued to acquire new consumers (especially in e-commerce and infant specialty store channels) and expand market share in line with strategic priorities. Biostime continued to seize market share in the high-end infant formula segment in mainland China, growing from 13.0% last year to 15.8% as of May 2025. Notably, the Group's Tier 1 and Tier 2 infant formula maintained a strong growth trend, achieving a 103% increase in total product turnover during the 618 Online Shopping Festival in 2025.

Revenue from probiotics and nutritional supplements for infants and young children declined by double digits for the six months ended June 30, 2025. The decline was mainly due to the continuous decline in passenger traffic and industry-wide challenges faced by the supplement business in the pharmacy channel in mainland China. However, the online sales volume of this category in mainland China has maintained low unit growth.

For the six months ended June 30, 2025, according to similar comparison standards, the Pet Nutrition and Care Products segment achieved high unit revenue growth compared to the same period last year. The reason is that the Group continues to benefit from the increasing popularity of high-end pet nutrition products, the trend of pet personification, and the increasing number of pets. The high-margin pet supplements segment continued to see steady revenue growth in the low to medium double digits.

According to a preliminary assessment of the Group's unaudited comprehensive management accounts for the six months ended June 30, 2025, the Group's adjusted comparable EBITDA5 is expected to achieve a slight decrease of 0% to 5% compared to the same period last year. It is expected that the adjusted comparable EBITDA rate for the six months ending June 30, 2025 will remain stable at medium to high double digits.

Thanks to the optimization of the debt structure and reduction in financing costs (based on the adjusted basis of non-cash write-off of one-time premiums and associated unamortized transaction costs after deducting the submission of offers and early redemption of senior notes due in 2026), it is expected that the Group's adjusted comparable net profit6 for the six months ended June 30, 2025 will increase by 1% to 15% over the same period last year. As for the Group's reported net profit as reported under IFRS, it is expected to reflect a decline of between 45% and 65%. The decrease in the Group's reported net profit was mainly due to the following adverse effects: payment of a one-time premium for submitting offers and early redemptions on senior notes due in 2026, and non-cash write-off of related unamortized transaction costs.

As of June 30, 2025, the Group maintained a steady liquidity position with a cash balance of approximately RMB 1.83 billion. In January 2025, the Group issued a new 3.5-year US dollar senior note at a more favorable coupon rate to refinance the US dollar senior notes due in June 2026 to further improve the debt situation. This active refinancing extended the maturity of the Group's debt and reduced overall financing costs. US dollar term loans and new dollar senior notes have mainly been hedged through cross-currency swaps. The Group is committed to further reducing its leverage ratio and consolidating its financial strength with the support of a high cash generation business model.