Health and Happiness International Holdings lifted its first-half 2026 growth outlook as the nutrition and care group reported a 23.7% year-on-year revenue increase and a 21.8% adjusted EBITDA margin.
The company’s shares surged 20.23% to $17.83 in trading, nearing their 52-week high of $17.86. Market capitalization reached $1.45 billion. First-half like-for-like revenue growth was driven by a 45% jump in baby nutrition and care, while adult nutrition and care rose 13.9%.
Adjusted EBITDA margin expanded by 71.9 basis points to 21.8%, with gross margins improving by about 3 percentage points to 62.45%. Adjusted net profit margin reached a double-digit 10.6%, supported by a 3 percentage point reduction in selling and distribution expense ratios. Net leverage stood at 2.05 times as of June 30, down from prior levels, with gross debt reduced by RMB 1 billion in the period.
The company declared an interim dividend of HKD 0.82 per share, equivalent to roughly RMB 460 million or 50% of adjusted net profit. Cash and equivalents totaled nearly RMB 2 billion, with undrawn credit lines exceeding RMB 1.26 billion and a $20 million revolving facility available.
Group CEO Akash Bedi highlighted that growth was achieved without sacrificing profitability, noting the adjusted EBITDA margin improvement. CFO Jason Wang cited a four-year deleveraging path, with net leverage expected to fall to about 2.0 times by year-end 2026.
Full-year 2026 guidance calls for net sales revenue growth in the mid-to-high teens, adjusted EBITDA margin in the mid-to-high teens, and adjusted net profit margin in the mid-to-high single digits. Baby nutrition is projected to grow more than 30%, while adult nutrition is seen in the low-teens. Pet nutrition overall is expected to rise in the high-single digits, with Zesty Paws growing in the high teens.
Chairman Luo Fei described 2026 as the first year of a three-year growth plan, citing strong execution in the first half. The company operates in over 20 markets, with China’s baby nutrition segment achieving a record 20.6% market share.
Input costs remain a challenge, with fish oil prices doubling since the start of 2026 and freight expenses elevated. H&H also faces a tax dispute in Australia, where it filed an appeal in the Federal Court after receiving an official decision from the Australian Taxation Office in July. The company had placed an AUD 100 million deposit in the prior year and expects no further cash outflows.
