Goodbaby international sees revenue rise, but profits hit by higher costs

Goodbaby International Holdings Limited reported a 2.7% increase in revenue to HK$4,300.9 million for the six months ended June 30, 2025, compared to HK$4,187.6 million in the same period of 2024. However, gross profit decreased by 3.0% to HK$2,134.8 million, with the gross profit margin contracting by 3.0 percentage points to 49.6%. Operating profit declined by 27.7% to HK$202.0 million, and net profit decreased by 43.7% to HK$105.5 million.

The decline in profitability was attributed to increased tariff-related costs, higher car seat product costs due to new regulatory standards, rising expenses for new product displays, and heavier promotions for older models, particularly in the US market. Selling and distribution expenses increased by HK$47.8 million to HK$1,253.0 million, driven by logistics and personnel costs. Administrative expenses also rose by HK$29.8 million to HK$756.8 million due to higher R&D and professional service expenses.

Strategic brand performance was varied, with CYBEX achieving robust revenue growth of 13.6% to HK$2,452.4 million. In contrast, Evenflo experienced a 5.2% revenue decrease to HK$1,075.3 million, and the gb brand saw a 21.1% decline to HK$394.8 million as it transitioned to self-owned retail channels. The company did not declare an interim dividend for 2025.