Nongfu Spring reports strong interim revenue and profit growth

Nongfu Spring Co., Ltd. reported a 15.6% increase in revenue to RMB25,622 million for the first half of 2025, compared to RMB22,173 million in the same period last year. Gross profit also saw a substantial rise of 18.6% to RMB15,456 million from RMB13,032 million. Profit for the period attributable to owners of the parent increased by 22.1% to RMB7,622 million, up from RMB6,240 million in the prior year. Basic earnings per share for the period were RMB0.677, an improvement from RMB0.555.

The growth was fueled by strong performance in key segments. Packaged drinking water products increased by 10.7% to RMB9,443 million, accounting for 36.9% of total revenue. Tea beverage products saw an even higher growth of 19.7% to RMB10,089 million, making up 39.4% of total revenue. Functional beverage products and juice beverage products also contributed positively, with revenues of RMB2,898 million (13.6% increase) and RMB2,564 million (21.3% increase), respectively.

The company's gross profit margin improved by 1.5 percentage points to 60.3%, primarily due to a decrease in procurement prices of PET raw materials and reduced costs for packaging materials such as cartons and sugar. Nongfu Spring's cash and bank balances, including long-term bank deposits, totaled RMB26,419 million as of June 30, 2025.