Stella International sees slight revenue rise, profit decline in H1 2025

Stella International Holdings Limited reported a slight revenue increase of 0.7% to $775.1m for the six months ended 30 June 2025, up from $770.0m in H1 2024. This growth was primarily driven by a 3.8% rise in shipment volumes to 27.5m pairs, despite a high-base effect from early 2024 shipments. However, the average selling price per pair decreased by 3.2% to $27.4 due to a higher proportion of Sports product orders.

The company experienced a decline in profitability, with gross profit falling by 11.9% to $175.2m, resulting in a gross profit margin of 22.6% (down from 25.8% in H1 2024). Operating profit decreased by 14.5% to $84.7m, and net profit for the period was $78.1m, down from $91.5m in H1 2024. These pressures were attributed to temporary efficiency issues and higher production costs from ramping up new capacities in Indonesia and the Philippines. The Board declared an interim dividend of HK52 cents per ordinary share.