Nongfu Spring Full Year 2023 Earnings: Beats Expectations

Nongfu Spring (HKG:9633) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥42.7b (up 28% from FY 2022).
• Net income: CN¥12.1b (up 42% from FY 2022).
• Profit margin: 28% (up from 26% in FY 2022). The increase in margin was driven by higher revenue.
• EPS: CN¥1.07 (up from CN¥0.76 in FY 2022).

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

Nongfu Spring Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 3.9%. Earnings per share (EPS) also surpassed analyst estimates by 12%.

The primary driver behind last 12 months revenue was the Water Products segment contributing a total revenue of CN¥20.3b (47% of total revenue). The largest operating expense was Sales & Marketing costs, amounting to CN¥9.28b (70% of total expenses). Explore how 9633's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 9.5% growth forecast for the Beverage industry in Hong Kong.

Performance of the Hong Kong Beverage industry.

The company's shares are down 2.3% from a week ago.

Balance Sheet Analysis

While earnings are important, another area to consider is the balance sheet. We've done some analysis and you can see our take on Nongfu Spring's balance sheet.

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