Want Want China's stock plunged 5.40% during intraday trading on Tuesday, following the release of its full-year financial results for the period ending March 31, 2026.

The sharp decline came as the company reported a significant 11.5% drop in profit attributable to equity holders to RMB 3.84 billion, despite a modest 3.8% revenue increase to RMB 24.4 billion. The profit decline was driven by multiple factors including a 14% decrease in operating profit, margin contraction, and rising costs across the business.

Key pressure points included a 1.3 percentage point contraction in gross margin to 46.3% due to higher prices for imported whole milk powder and palm oil. Additionally, distribution expenses surged 16.9% to RMB 3.54 billion, while administrative expenses expanded 11.4% to RMB 3.35 billion. Investors were further disappointed by the company's decision to cut its final dividend to US 1.38 cents per share from US 2.04 cents a year earlier.