H&H INTL HLDG (01112) expects its adjusted comparable net profit to increase by 15% to 25% year-on-year in 2025.

H&H International Holdings (01112) announced that as of the end of the fiscal year on December 31, 2025, the group's total revenue achieved a low double-digit growth compared to the previous year, based on the reporting standard and similar benchmarks. This strong growth was mainly driven by the growth of all business segments (including adult nutrition and care products, infant and toddler nutrition and care products, and pet nutrition and care products). As of the end of the fiscal year on December 31, 2025, the revenue of the adult nutrition and care products segment achieved a mid-single-digit growth, mainly driven by the low double-digit growth in mainland China and strong double-digit growth in other expanding markets. This outstanding performance was driven by the sustained strong growth of innovative product categories such as heart health, anti-aging, and detox products, as well as the continuous growth of the SwissePlus and LittleSwisse series. Despite the strategic decision to prioritize the reduction of corporate purchasing business, resulting in a double-digit decrease in overall Australia and New Zealand (ANZ) revenue, the revenue in the domestic ANZ market achieved a mid-single-digit growth, outperforming the overall domestic market. As of the end of the fiscal year on December 31, 2025, the revenue of the infant and toddler nutrition and care products segment regained clear momentum and achieved strong double-digit growth. In the infant and toddler nutrition and care products segment, sales of infant formula milk powder for the fiscal year ending December 31, 2025, achieved strong double-digit growth annually, far exceeding the overall infant formula milk powder market in mainland China. This significant increase reflects the successful completion of the transition to the new "national standard" and the effective and strict implementation of the strategic development focus, including expanding coverage to new mothers through social media, e-commerce platforms, and infant specialty stores. As of the end of the fiscal year on December 31, 2025, revenue from infant probiotics and nutritional supplements achieved a low single-digit growth annually. The recovery in revenue growth was driven by the successful launch of innovative probiotic products by the group, as well as the accelerated growth of infant specialty stores and online channels. The revenue growth was also attributed to the expansion of product combinations such as children's nutritional powder supplements. As of the end of the fiscal year on December 31, 2025, taking advantage of favorable structural advantages and global trends towards high-end and humanized pet products, the revenue of the pet nutrition and care products segment achieved a high single-digit growth based on similar benchmarks. In the pet nutrition and care products segment, the high-profit pet supplement category continued to achieve stable revenue growth in the mid-double digits. Furthermore, it is expected that the group's adjusted comparable EBITDA will increase by 2%-6% year-on-year in 2025, and the adjusted comparable EBITDA margin for the fiscal year 2025 is expected to maintain a robust level close to the mid-double digits. Benefiting from continued debt structure optimization and reduced financing costs (based on adjusted benchmarks excluding the one-time premium paid for the tender offer and early redemption of senior notes due in 2026 and the related unamortized transaction costs which are non-cash adjustments), it is expected that the group's adjusted comparable net profit for the fiscal year 2025 will achieve a strong growth of 15% to 25% compared to the previous year. As for the group's reported net profit according to International Financial Reporting Standards, even considering the impairment of intangible assets related to the acquisition of the non-core baby food brand GoodGot in Europe in 2025, the net loss net of fair value losses on derivative financial instruments and financial assets, and other non-cash or non-recurring items is expected to turn into profit compared to the previous year, achieving growth of over 400%. As of December 31, 2025, the group maintains a strong liquidity position, with a cash balance exceeding 1.7 billion renminbi. With the strong operating cash flow generated and optimized capital structure, the group accelerated its deleveraging process and reduced total debt by over 600 million renminbi during the year.