Health and Happiness International Holdings Ltd. (HKEX: 1112) reported a 23.7% year-over-year rise in revenue to RMB 8.7 billion for the first half of 2026, driven by strong performance across its nutrition and care segments. The Hong Kong-listed group also posted a 71.9% increase in adjusted EBITDA to RMB 1.9 billion, expanding its margin to 21.8% from 14.8% a year earlier.
Adjusted net profit surged 153.2% to RMB 919.2 million, lifting the net profit margin to 10.6% from 5.2% in H1 2025. Gross margin expanded to 65.4%, with category-level gains including a 76.7% margin for probiotic and children’s nutritional supplements. Operating cash flow matched adjusted EBITDA, while the group reduced gross debt by over RMB 1 billion to RMB 7.8 billion.
The Adult Nutrition & Care segment grew 13.9% year-over-year, contributing 45.7% of total revenue. Baby Nutrition & Care revenue rose 45.2%, with infant milk formula sales in mainland China up 58.0%. Pet Nutrition & Care revenue increased 4.8%, led by a 16.7% rise in Zesty Paws sales in North America.
Net leverage improved to 2.05 times from 3.45 times at year-end 2025, with finance costs declining to RMB 311.9 million. The group declared an interim dividend of HK$0.82 per share, equivalent to 50% of adjusted net profit and totaling approximately RMB 460 million. The shares rose 20.23% to HK$17.83 following the announcement.
For the full year, H&H guided to mid-to-high teens revenue growth and adjusted EBITDA margin expansion, with Baby Nutrition & Care expected to lead with over 30% revenue growth. Chairman Luo Fei noted the first half of 2026 marked a strong start to the company’s three-year growth plan, while Group CEO Akash Bedi emphasized that growth was achieved without compromising profitability.
