Nongfu Spring reports strong interim revenue and profit growth in H1 2025

Nongfu Spring recorded total revenue of 25,622 million yuan for the six months ended June 30, 2025, marking a 15.6% year-on-year increase. Profit attributable to owners of the parent surged by 22.1% to approximately 7,622 million yuan, with basic earnings per share rising 22.0% to 0.677 yuan. The gross profit margin improved by 1.5 percentage points to 60.3%, primarily due to falling procurement prices of PET raw materials and reduced packaging material and sugar costs.

The company's packaged drinking water products saw revenue grow by 10.7% to 9,443 million yuan, accounting for 36.9% of total revenue. Tea beverage products led the growth, with revenue increasing by 19.7% to 10,089 million yuan, representing 39.4% of total revenue. Functional beverage products and juice beverage products also experienced substantial growth, with revenues of 2,898 million yuan (up 13.6%) and 2,564 million yuan (up 21.3%) respectively.

Selling and distribution expenses increased modestly by 0.8% to 5,011 million yuan, while administrative expenses rose 17.0% to 1,068 million yuan. Finance costs decreased from 39 million yuan in 2024 to 25 million yuan in 2025. The company's cash and bank balances, along with long-term bank deposits and restricted cash, collectively increased by 23.7% to 26,419 million yuan as of June 30, 2025.