China's MIXUE Group H1 profit falls 15% as costs rise

MIXUE

27/08/2026 05:15

Overview
China freshly-made drinks firm's H1 revenue rose 2.3% yr/yr, driven by higher sales and franchise fees
Profit for the period declined 14.7% as costs and investments outpaced revenue growth
Gross margin narrowed to 30.4% due to higher costs and increased marketing expenses

Outlook
MIXUE Group says it will invest in supply chain, store operations and brand IP to drive growth
Company plans to expand global store network and deepen presence in new markets

Result Drivers
SALES AND FRANCHISE FEES - Co said revenue growth was mainly driven by higher sales of goods and equipment and increased franchise and related services
PRODUCT QUALITY INVESTMENTS - Cost of sales rose due to strategic investments to enhance product quality, focusing on real ingredients, fresh taste, and simple recipes
MARKETING AND STAFF COSTS - Selling and distribution expenses increased due to higher marketing expenses and staff costs from brand IP development and enhanced store support

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 15.22 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 4 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for MIXUE Group is HK$383.00, about 54.1% above its August 26 closing price of HK$248.60
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads
Aug 26 - Bubble tea chain Guming Holdings' half-year revenue rises on store expansion
Aug 25 - China Foods H1 revenue rises on channel expansion, functional-drink growth
Aug 25 - China's Nongfu Spring H1 revenue rises on tea beverage growth

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Press Release s3://eap-prd-eu-west-1-source-content/eap_feed_proxy/fingerpost/HKSW/2026-08-27/c13dcd7d-46f9-41ec-9a8f-a1d428fb6797.file
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)