H&H Group (01112.HK): H1 Total Revenue Records Double-Digit Growth; Adjusted Comparable EBITDA Up 60%-70%

NewTimeSpace · 2026/07/06 07:50 · By Boyuan Chen

H&H Group announced unaudited H1 results showing double-digit total revenue growth on a like-for-like basis, with infant formula revenue up over 50% and Biostime's ultra-premium market share rising to 20.0%. Adjusted comparable EBITDA is expected to grow 60%-70%, adjusted comparable net profit over 100%, and reported net profit over 700%. Total debt fell by approximately RMB1 billion with net leverage expected to drop to ~2.25x. Regarding BHA's tax review, the Australian Taxation Office partially accepted objections, reducing primary tax to AUD208.1 million, and BHA plans to appeal to the Federal Court.

Health and Happiness (H&H) International Holdings Limited (01112.HK) announced unaudited business and financial updates for the six months ended June 30, 2026.

On a like-for-like comparison basis, the group's total revenue recorded double-digit growth year-on-year, driven by growth across all business segments. The adult nutrition and care segment recorded low-to-mid double-digit revenue growth, with sustained double-digit growth in mainland China, ANZ domestic markets, and expansion markets. Douyin remained the main growth engine for Swisse, growing over 50%. The infant nutrition and care segment saw accelerated revenue growth momentum, recording high double-digit year-on-year growth, with infant formula revenue growing over 50% during the period. Biostime continued to gain market share in the ultra-premium infant formula segment in mainland China, increasing from 14.6% last year to 20.0%. The pet nutrition and care segment recorded mid-to-high single-digit revenue growth.

Financially, based on preliminary assessments of unaudited consolidated management accounts, the group's adjusted comparable EBITDA is expected to record a significant increase of 60% to 70% year-on-year. The adjusted comparable EBITDA margin is expected to exceed 20%. Adjusted comparable net profit is expected to increase by over 100% year-on-year. Reported net profit under IFRS is expected to achieve high-speed growth of over 700% due to the low base in the same period last year.

Regarding leverage and liquidity, total debt decreased by approximately RMB1 billion compared to December 31, 2025. The net leverage ratio is expected to decrease significantly from 3.45x as of December 31, 2025, to approximately 2.25x for the twelve months ended June 30, 2026. As of June 30, 2026, the group maintained a robust cash position of close to RMB2 billion. RMB-denominated and hedged RMB debt collectively accounted for over 97% of total borrowings. The company has obtained principle credit approvals from a number of domestic and overseas financial institutions to support proposed refinancing arrangements.

Regarding the tax review of Biostime Healthy Australia Pty Ltd (BHA), the Australian Taxation Office issued a written decision on July 3, 2026, largely rejecting but partially accepting BHA's objection, reducing the primary tax from AUD234.5 million to AUD208.1 million and penalties from AUD117.2 million to AUD104.0 million. BHA intends to file a notice of appeal with the Federal Court of Australia this week to formally initiate legal proceedings.

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