H&H Group announced robust financial results for 2025, with full-year revenue increasing by 10.3% to $14.3 billion RMB. Net profit saw a significant surge of 22.7%, reflecting strong operational efficiency. This performance led to a 3.16% increase in the company's stock price, demonstrating investor confidence. The company also maintained a dividend payout ratio of 30%, with a dividend of $0.35 HKD per share.
All three of H&H Group's business segments contributed to this growth, even amidst challenging macroeconomic conditions. The Adult Nutrition Category (ANC) was a major contributor, accounting for 67.4% of the total group's EBITDA, while the Baby Nutrition Category (BNC) and Pet Nutrition Category (PNC) also showed substantial improvements. The adjusted EBITDA margin stood at 14.3% of revenue, and the adjusted net profit margin was 4.6%.
Looking ahead, H&H Group remains optimistic, projecting EPS forecasts of $0.17 USD for FY2026 and $0.22 USD for FY2027, with revenue forecasts of $2.28 billion USD and $2.36 billion USD, respectively. The company plans to continue strategic investments in product innovation, supply chain optimization, and leveraging consumer insights and scientific research. Additionally, the net leverage ratio was significantly reduced from 4x in 2024 to 3.045x in 2025, and the company aims to lower it further to around 3x by 2027 and 2x by 2028, supported by strong operating cash flow conversion of 88% of adjusted EBITDA.
