Hengan International Group Full Year 2024 Earnings: Misses Expectations

Hengan International Group (HKG:1044) Full Year 2024 Results

Key Financial Results

• Revenue: CN¥22.7b (down 4.6% from FY 2023).
• Net income: CN¥2.30b (down 18% from FY 2023).
• Profit margin: 10% (down from 12% in FY 2023). The decrease in margin was driven by lower revenue.
• EPS: CN¥2.02 (down from CN¥2.42 in FY 2023).

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All figures shown in the chart above are for the trailing 12 month (TTM) period

Hengan International Group Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 1.9%. Earnings per share (EPS) also missed analyst estimates by 11%.

The primary driver behind last 12 months revenue was the Tissue Paper Products segment contributing a total revenue of CN¥14.1b (62% of total revenue). Notably, cost of sales worth CN¥15.3b amounted to 68% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to CN¥3.69b (73% of total expenses). Explore how 1044's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 1.6% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Personal Products industry in Hong Kong.

Performance of the Hong Kong Personal Products industry.

The company's shares are up 1.5% from a week ago.

Risk Analysis

It is worth noting though that we have found 1 warning sign for Hengan International Group that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.