H&H International Holdings (01112) announced that for the fiscal year ending December 31, 2025, the group's total revenue increased by a low double-digit percentage on both a reported and comparable basis compared to the previous year. This robust growth was primarily driven by expansion across all business segments, including Adult Nutrition and Care, Infant Nutrition and Care, and Pet Nutrition and Care.

During the year ending December 31, 2025, the Adult Nutrition and Care segment achieved a mid-single-digit revenue increase. This was largely fueled by a low double-digit growth in Mainland China and sustained strong double-digit growth in other expansion markets. The segment's strong performance was supported by continuous robust growth in innovative product categories such as heart health, anti-aging, and detoxification, alongside the ongoing expansion of the SwissePlus and LittleSwisse ranges. Although a strategic decision to deprioritize the corporate daigou business led to a double-digit decline in overall Australia and New Zealand revenue, the domestic ANZ market still recorded a mid-single-digit increase, outperforming the broader domestic market.

The Infant Nutrition and Care segment returned to a clear growth trajectory, posting a strong double-digit revenue increase for the year ending December 31, 2025. Within this segment, infant formula sales grew by a strong double-digit percentage year-on-year, significantly outpacing the overall infant formula market in Mainland China. This substantial growth reflects the effective execution of the group's strategic focus following the successful transition to new national standards, including expanded outreach to new mothers via social media, e-commerce platforms, and specialized infant stores. Revenue from infant probiotics and nutritional supplements grew by a low single-digit percentage. The return to positive growth was driven by the successful launch of innovative new probiotic products and accelerated growth in both specialized infant stores and online channels. The revenue increase was also attributed to an expanded product portfolio, which now includes items like children's nutritional powder supplements.

For the year ending December 31, 2025, the Pet Nutrition and Care segment achieved a high single-digit revenue increase on a comparable basis. This growth was supported by favorable structural advantages and global trends toward pet premiumization and humanization. Within this segment, the high-margin pet supplements category continued to deliver steady revenue growth in the mid-teens.

The group expects its adjusted comparable EBITDA for 2025 to increase by 2% to 6% year-on-year. The adjusted comparable EBITDA margin is anticipated to remain at a stable level near the mid-teens. Benefiting from ongoing optimization of the debt structure and lower financing costs, the group forecasts its adjusted comparable net profit for 2025 to achieve a strong growth of 15% to 25% compared to the previous year. This calculation is made on an adjusted basis that excludes non-cash charges related to a one-time premium paid for the tender offer and early redemption of senior notes due 2026 and the write-off of associated unamortized transaction costs.

Regarding the group's reported net profit under International Financial Reporting Standards, even after accounting for 2025 items such as impairment of intangible assets related to the prior acquisition of the non-core European infant food brand GoodGoût, net fair value losses on derivative financial instruments and financial assets, and other non-cash or non-recurring items, a significant turnaround is expected. Compared to the net loss recorded last year, the group is projected to return to profitability with growth exceeding 400%.

As of December 31, 2025, the group maintained a solid liquidity position, with cash balances exceeding RMB 1.7 billion. Supported by strong operating cash flow generation and an optimized capital structure, the group accelerated its deleveraging process, reducing total debt by more than RMB 600 million during the year.