IFBH (06603) has issued a profit warning, stating that it expects its net profit for the six months ending June 30, 2026 (the reporting period) to decrease by approximately 65% to 75% compared to the same period in 2025.

Based on currently available information, the board believes the anticipated net profit decline is due to global supply chain disruptions caused by heightened geopolitical tensions. This has led to shortages in the supply of polyethylene terephthalate (PET), other packaging materials, and coconut water, as well as increased procurement costs for coconut water and packaging materials.

The reduced supply of raw materials has constrained the group's production schedules and product availability, while the higher procurement costs have impacted its gross profit margin, resulting in lower sales and profitability.

Based on currently available information, the group expects its revenue for the reporting period to decrease by approximately 40% to 50% compared to the same period in 2025. The board attributes this expected decline to the aforementioned shortages in PET, other packaging materials, and coconut water, which have limited the supply of products available to distributors.

Additionally, against the backdrop of weaker overall consumer sentiment in the coconut water category, the ongoing restructuring and optimization of the Innococo distribution channel has not yet returned to its 2024 operational capacity, further dragging down sales performance.

The net profit decline for the reporting period is attributed to the drop in sales, which has led to reduced revenue and gross profit during the period.