Yeo Hiap Seng Limited (SGX: Y03) reported a net profit of S$21.1 million for the year ended 31 December 2025 (FY2025), more than tripling the S$6.9 million posted a year earlier, as a one-off S$45.3 million gain from a 50-year land-lease extension in Guangzhou offset weaker sales.

Group revenue declined 11.0% year-on-year to S$292.4 million, while earnings per share rose to 3.38 Singapore cents from 1.11 cents. The board has proposed a final dividend of 2.0 Singapore cents per share for FY2025.

Core food and beverage (F&B) revenue slipped 7.8% YoY to S$276.1 million amid softer consumer spending, heightened competition and inventory reductions by trade partners. Gross profit fell 15.5% to S$92.1 million, with margin narrowing 1.7 percentage points to 31.5% as lower production volumes and S$2.8 million in enterprise resource planning implementation costs weighed on profitability.

Other gains, chiefly the Guangzhou land-lease extension, underpinned the bottom-line turnaround and lifted the net margin to 7.2% from 2.1% in FY2024.

Management cited subdued demand and macro-economic uncertainty as key headwinds. These factors, coupled with intense competitive pressures, curbed top-line growth across major markets.

Looking ahead to 2026, Yeo’s plans to: • Introduce smaller pack sizes to bolster affordability and expand premium, higher-margin offerings targeting middle-class consumers. • Accelerate product innovation through external partnerships, with a focus on the United States and Europe. • Sustain cost discipline and productivity initiatives to support reinvestment. • Optimise its supply-chain network to enhance efficiency and gross margins. • Deploy its S$190.8 million cash balance selectively to pursue growth opportunities aligned with long-term objectives.

The company said easing inflation offers “cautious optimism,” but it will maintain vigilance in view of persistent geopolitical uncertainties as it works to reinforce fundamentals and drive sustainable growth.