Financial and Investor News
|H&H announces Interim Results 2025
Media Release – 2025 Interim Results
26 August 2025
H&H Group achieves revenue growth across all business segments in H1 2025
- High-margin nutritional supplements[^1] have been a key growth driver, accounting for 65.6% of total Group revenue – with VHMS and pet supplements delivering 5.8% and 14.3% growth on a like-for-like (LFL[^2]) basis, respectively
- Adult Nutrition and Care (ANC) segment achieved 5.9% growth with Swisse reinforcing its leading positions around the world including newly ranked No.1 brand position in mainland China's overall VHMS market[^3] – while accelerating growth in expansion markets (38.7% growth and contributing 7.1% to total ANC sales)
- Baby Nutrition and Care (BNC) segment rebounded to grow 2.9%, thanks to growth in IMF sales (10.0%) in mainland China – while Biostime's share in the super-premium IMF category reached its highest-ever level of 15.9% in June 2025[^4]
- Pet Nutrition and Care (PNC) segment emerged as a key growth contributor for the Group to represent 15.4% of total revenue, driven by Zesty Paws (13.4% growth) and Solid Gold rebounding in mainland China (17.5% growth)
- Adjusted EBITDA margin (reaching 15.7%) and adjusted net profit margin have remained at a healthy level, while maintaining a strong level of cash conversion and liquidity
- Improved debt profile, optimised capital structure and lowered overall financing costs – with the successful refinancing of outstanding USD297 million senior notes due in 2026 at a significantly more favourable coupon rate, a proactive step in extending the Group's maturity profile
Leading global family nutrition company, Health and Happiness (H&H) International Holdings Limited ("H&H Group" HKSE: 1112), has today announced its interim results for the six months ended 30 June 2025, reporting growth across all business segments to deliver 5.2% growth on a LFL basis.
Ms. Suceka Li, Rotating Group CEO and CEO for China at H&H Group, says she's pleased with the Group's performance in the first half of the year, which delivered consistent and healthy profitability, while making significant progress on key initiatives across all three business segments.
"As we reflect on the first six months of 2025, I'm encouraged by what I see and the progress we've made as a Group. Thanks to our steadfast business strategy, determination and consumer-centric mindset, all three of our business segments achieved revenue growth. We've made strong gains in our core markets, with nutritional supplements – namely pet and VHMS supplements – playing a pivotal role in this success. Swisse now ranks as the No.1 VHMS brand overall in mainland China's VHMS market[^5], while making significant progress in expansion markets – a testament to our ability to successfully replicate Swisse's success across diverse markets, while remaining agile and innovative to meet consumer needs. Meanwhile, Swisse reinforced its leadership in Australia & New Zealand to cement its No.1 position in the overall VHMS market by both value and volume[^6]. Moreover, I'm proud to share that our BNC segment has returned to growth, led by the revival of our infant milk formula (IMF) sales in mainland China and Biostime reaching its highest ever market share in the super-premium IMF category in mainland China," says Ms. Li.
"Furthermore, I'm pleased to see that our PNC segment has become a significant contributor to overall Group revenue. This was driven by Zesty Paws' strong performance, and a successful first half of the year for Solid Gold in mainland China, where it returned to growth, as we benefited from a booming pet population in North America, mainland China, and other expansion markets. Overall, our high-margin pet supplements category performed particularly well, demonstrating the strength of our product portfolio."
These accomplishments, along with the optimisation of the Group's debt structure and a reduction in adjusted finance costs[^7], resulted in 4.6% growth in adjusted net profit for the six months ended 30 June 2025. H&H remains committed to strengthening its balance sheet while maintaining its steady track record of dividend payouts. In line with this commitment, the Group has announced an interim dividend of HKD0.19 per ordinary share.
Regional highlights
Mainland China, the Group's largest market, grew 8.7% led by strong results across all three segments. The ANC segment reported double-digit growth, outpacing competitors in multiple categories, tapping into new trends and reaping rewards from its channel mix strategy.
Ms. Li comments, "We've seen an encouraging performance in mainland China in the first half of 2025, particularly in our ANC segment. Thanks to our unparalleled innovation strategy, our dedication and speed in evolving with consumer preferences, Swisse ranked No.1 in the overall VHMS market[^8] – as well as maintaining its No.1 position online[^9]. We also successfully leveraged consumer trends by bolstering our mega-brand strategy, notably seeing good performances across our Swisse Plus and Little Swisse ranges. We have also been capitalising on the ageing population and demand for innovative anti-ageing solutions, focusing on high margin, structurally growing anti-ageing supplements. Swisse is uniquely positioned to capture this growing segment and unlock new growth potential, especially with our comprehensive product matrix under Swisse and Swisse Plus – more specifically, our leading positions in both the NAD+ and EGT categories. Our success in the first half of 2025 was also strongly supported by our robust channel mix strategy, led by fast-growing online channels, with sales in the cross-border e-commerce (CBEC) channel growing by 18.1% and contributing 81.5% of our mainland China ANC revenue. In addition, Douyin has proven to be a powerful growth engine for us (80.3% growth), with our well-executed strategy propelling us to the No. 4 position in the VHMS category on this platform[^10]."
The Group's e-commerce strength was further reinforced during the recent 618 online shopping festival. Swisse achieved robust GMV growth and secured the No.1 position in the nutritional supplements category across major e-commerce platforms, including Tmall, JD.com, Douyin, and Vipshop[^11].
Mainland China's BNC segment marked a return to growth, with the transition to new 'GB' standards completed and IMF sales rebounding at a 10.0% growth rate – far outpacing overall IMF market growth (0.2% in retail scan sales[^12]).
"I'm proud of the perseverance demonstrated by our BNC team in mainland China, resulting in a rebound in IMF sales which has supported the turnaround of the Group's BNC segment," continues Ms. Li. "This has been driven by our excellent execution of strategic priorities, with Biostime reaching a historic high market share of 15.9%[^13] in mainland China's super-premium IMF segment in June 2025. Our Stage 1 and Stage 2 IMFs demonstrated particularly strong momentum, fuelled by successful educational initiatives for new mothers via e-commerce and baby specialty stores – the effectiveness of which was on full display during the 618 online shopping festival, where GMV growth reached 103%. In addition, brand searches on RedNote and Douyin more than tripled compared to the same period in 2024, positioning e-commerce as a key growth driver for our older-stage formulas in 2025."
Paediatric probiotic and nutritional supplements reported a narrowing decline, with the overall category still down double digits, primarily due to continued traffic weakness in offline pharmacy channels. This was partially offset by low-single-digit growth in online and baby specialty channels. Meanwhile in the PNC segment, the Group achieved a turnaround in Solid Gold's performance to reach 17.5% growth, with high-margin pet food and supplements contributing 33.8% of PNC revenue in mainland China.
In Australia and New Zealand (ANZ), total revenue declined by 15.6% on a LFL basis due to the decline of the corporate daigou business in the first half of 2025. Nevertheless, Swisse outperformed the overall domestic market and solidified its market leadership, becoming Australia's No.1 VMS brand on both a volume and value basis across the total market[^14].
Ms. Li notes, "In ANZ, the domestic market delivered steady mid-single-digit growth, while export sales fell as expected following a decline in the corporate daigou business. Nonetheless, thanks to our market-leading new product launches – such as Swisse Magnesium Glycinate and Little Swisse Kids Gummies – and our best-in-class marketing campaign 'Here Life Comes', Swisse strengthened its market leadership in terms of both volume and value."
The Group accelerated the growth of its PNC business in North America, which has now emerged as a key revenue contributor. Zesty Paws accounted for 84.6% of regional PNC revenue, maintaining strong growth (12.8% on a LFL basis) thanks to its robust omni-channel strategy. Meanwhile, Solid Gold sales declined by 23.3% (on a LFL basis) due to the Group's strategic shift towards higher-margin channels and premium products – with e-commerce contributing 80.9% of sales and high margin products accounting for 24.7%. This is in line with the long-term portfolio optimisation strategy.
"Zesty Paws has showed excellent progress in the first half of 2025 as we continued to capitalise on the well-established pet humanisation and premiumisation trends, as well as the rising pet population. Our progress has been supported by success on Amazon and Chewy, as well as at key retailers including Walmart, Petsmart, Petco, Tractor Supply, Target, Sam's Club, CVS, and Menards. As a result, we've strengthened Zesty Paws' position as one of the most recognised pet supplements brands in the US. We've also boosted our presence in-store, with Zesty Paws and Solid Gold now available in more than 20,000 and 4,800 stores, respectively, across the US (as of 30 June 2025)", says Ms. Li.
In other territories, strong sales growth in expansion markets in Asia, including Hong Kong SAR, Thailand, Malaysia, India and the Middle East, was a significant contributing factor to the overall revenue increase in the ANC segment. The Group sustained its market share rankings in most of these markets through the expansion of its product portfolio and ongoing distribution gains, including the No. 1 position in the beauty VHMS, liver health, and men's health markets in Singapore[^15], and the No. 2 position in Italy's beauty VHMS market[^16].
The Group is also focused on enhancing the global presence and footprint of its PNC segment and leveraging its expertise in premium pet nutrition – supported by successful launches in the UK, Europe, Asia and ANZ.
Full year outlook
For the second half of 2025, the Group will focus on sustaining its current growth trajectory by accelerating high-margin, fast-growing nutritional VHMS and pet supplements across all segments.
Ms. Li concludes, "Looking ahead to our full year outlook, we expect our ANC segment to maintain its growth momentum, driven by mainland China and expansion markets including Southeast Asia, India, the Middle East, Italy, Singapore and Hong Kong SAR. We'll capitalise on our No.1 position in the overall VHMS market in mainland China through product innovation and online channel distribution, while in ANZ we anticipate continued steady growth in the domestic market. Meanwhile for our BNC business, we expect to build on our first-half success and accelerate IMF sales momentum in the second half of 2025. Educating new mothers remains a key part to our strategy, alongside building on successful marketing efforts and advancing older-stage IMF conversion to strengthen our market position."
The Group's PNC segment looks set to maintain its current growth rate, led by Zesty Paws' continued success through its omni-channel strategy and category innovation. This momentum is expected to continue in North America and expansion markets. While Solid Gold sales in North America are still expected to decline as part of its ongoing channel optimisation and portfolio premiumisation, the brand will continue to growth in mainland China through its continued focus on the premium pet food and supplements category and with its strengthened CBEC presence driving momentum.
Finally, the Group remains committed to further deleveraging while maintaining robust liquidity, despite ongoing external challenges. A disciplined financial approach will enable H&H to steadily reduce its net leverage ratio and effectively manage exchange rate volatility, bolstering its financial resilience and flexibility to support future growth.
FINANCIAL RESULTS
Six months ended 30 June (RMB million, Unaudited)
| 2025 | 2024 | Change | |
|---|---|---|---|
| Revenue | 7,019.2 | 6,692.1 | +4.9% |
| Gross profit | 4,389.1 | 4,072.3 | +7.8% |
| EBITDA[^17] | 1,033.1 | 1,098.4 | -5.9% |
| Adjusted EBITDA[^17] | 1,100.7 | 1,139.8 | -3.4% |
| Adjusted EBITDA margin | 15.7% | 17.0% | -1.3pts |
| Net profit | 71.0 | 305.8 | -76.8% |
| Adjusted Net profit[^18] | 363.0 | 347.2 | +4.6% |
| Adjusted net profit margin | 5.2% | 5.2% | – |
-ENDS-
For media inquiries, contact:
H&H Group
Annabel Vinten (née Jenkins)
+44 7514535600
annabel.vinten@hh.global
Think Alliance Group
Matthew Schultz
+852 3481 1161
matt.schultz@think-alliance.com
[^1]: Nutritional supplements include Biostime probiotic supplements, Biostime paediatric products, Swisse vitamin, herbal and mineral supplement ("VHMS") products, and Solid Gold and Zesty Paws pet supplements.
[^2]: LFL basis is used to indicate sales growth for this financial period compared with the same period of the previous year, excluding the impact from foreign exchange changes.
[^3]: According to research statistics by brand for the past twelve months ended 30 June 2025, prepared by Kantar Worldpanel, an independent research company.
[^4]: According to research statistics by Nielsen, an independent research company, market share data for the past six months ended 30 June 2025.
[^5]: According to research statistics by brand for the past twelve months ended 30 June 2025, prepared by Kantar Worldpanel, an independent research company.
[^6]: According to research statistics by IQVIA, an independent research company, market share data for the past six months ended 30 June 2025.
[^7]: Excluding the one-time premium paid for the tender offer and early redemption of the senior notes due in 2026 and the related non-cash write-off of unamortised transaction costs.
[^8]: According to research statistics by brand for the past twelve months ended 30 June 2025, prepared by Kantar Worldpanel, an independent research company.
[^9]: According to research statistics by Early Data, an independent data provider, market share data for the past twelve months ended 30 June 2025.
[^10]: According to research statistics by Feigua, an independent data provider, market share data for the past twelve months ended 30 June 2025.
[^11]: According to Tmall statistics, Swisse's overseas flagship store ranked No. 1 in sales in the health foods/dietary supplements category on Tmall during the period from 20 May to 18 June 2025. According to JD.com statistics, Swisse ranked No. 1 in GMV in the Nutrition and Health category under JD Health from 8:00 p.m. on 13 May to midnight on 18 June 2025. According to Douyin's statistics, Swisse ranked No. 1 in sales in the overseas dietary supplements category from 13 May to 18 June 2025. According to Vipshop's statistics, Swisse ranked No. 1 in sales in the nutritional supplements category from 17 May to 18 June 2025.
[^12]: According to research statistics by Nielsen, an independent research company, market share data for the past six months ended 30 June 2025.
[^13]: According to research statistics by Nielsen, an independent research company, market share data for the past six months ended 30 June 2025.
[^14]: According to research statistics by IQVIA, an independent research company, market share data for the past six months ended 30 June 2025.
[^15]: According to research statistics by Nielsen, an independent research company, market share data for the past twelve months ended 30 June 2025.
[^16]: According to research statistics by IMS IQVIA, an independent research company, market share data for the past twelve months ended 30 June 2025.
[^17]: EBITDA refers to earnings before interest, income tax expense, depreciation and amortization. Adjusted EBITDA = EBITDA + Non-cash losses of RMB57.6 million for the six months ended 30 June 2025 (six months ended 30 June 2024: gains of RMB5.5 million) + Non-recurring losses of RMB10.0 million for the six months ended 30 June 2025 (six months ended 30 June 2024: losses of RMB46.9 million).
[^18]: Adjusted net profit = Net profit + EBITDA adjustment items of losses of RMB67.6 million for the six months ended 30 June 2025 (six months ended 30 June 2024: losses of RMB41.4 million) + Other non-cash losses of RMB224.4 million for the six months ended 30 June 2025 (six months ended 30 June 2024: nil).