China's Nongfu Spring H1 revenue rises on tea beverage growth

Nongfu Spring

25/08/2026 13:41

Overview
China beverage maker's interim revenue rose 16% yr/yr
Net income attributable to shareholders grew 16.6% yr/yr; basic EPS increased 16.7% yr/yr
Gross profit margin rose to  60.9%, representing an increase of 0.6 percentage points

Outlook
Company did not provide specific guidance or outlook commentary in the interim results release

Result Drivers
REVENUE GROWTH - Interim revenue increased 16% yr/yr to RMB29.72 bln, driven by tea-beverage expansion as East Leaf expanded pack sizes, products and consumption scenarios
FAVORABLE INPUT COSTS – Gross margin rose 0.6 percentage points to 60.9%, as lower juice and sugar procurement costs outweighed higher PET prices and mix changes
LOGISTICS COST SAVINGS – Selling and distribution costs stayed broadly flat as a share of revenue despite higher advertising and promotion spending, aided by lower logistics costs from sales-mix changes

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 29.72 bln
 
H1 Net Income Attributable
 
RMB 8.89 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the non-alcoholic beverages peer group is "buy"
Wall Street's median 12-month price target for Nongfu Spring Co Ltd is HK$54.25, about 26% above its August 25 closing price of HK$43.04
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 25 three months ago

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Aug 24 - China's Busy Ming Group H1 revenue surges amid store network expansion

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(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.)