Hengan profit dips 18pc to 2.3 billion yuan

Shares of personal hygiene products manufacturer Hengan International (1044) dropped nearly 2 percent after announcing its net profit declined 18 percent from a year prior.

The company’s net profit last year recorded 2.3 billion yuan (HK$2.46 billion), down 17.9 percent from 2023, blaming declined gross profit.

It maintained a dividend of 0.7 yuan.

Revenue last year amounted to 22.67 billion yuan, down 4.6 percent year-on-year.

Gross profit slid 8.6 percent to 7.32 billion yuan from 2023, dragged down by higher inventory costs and promotion fees.

Gross profit margin dropped by 1.4 percentage points to 32.3 percent.

Revenue of its sanitary napkin business decreased by around 8.1 percent year-on-year to 5.68 billion yuan. 

The tissue paper business contributed to a revenue of 13.42 billion yuan, down 2.4 percent, while turnover of the disposable diaper business increased by 0.5 percent to 1.26 billion yuan.

The company expects the revenue and gross profit in 2025 to remain stable.

Shares of the company closed at HK$21.90 on Wednesday.

STAFF REPORTER