GOODBABY INTL issues a profit warning, expecting a year-on-year decrease of approximately 40% to 50% in net profit for the first half of the year
GOODBABY INTL expects that its net profit in the first half of 2025 will decrease by approximately 40% to 50% year-on-year, despite a slight increase in revenue. The decline in net profit is mainly due to the decrease in profits from the U.S. market business, affected by factors such as increased tariff costs, rising product costs due to new regulatory standards, and increased product display and promotional expenses. The group adopts a prudent and conservative pricing strategy to cope with macroeconomic uncertainties
According to the Zhitong Finance APP, GOODBABY INTL (01086) announced that for the six-month period ending June 30, 2025, despite a slight increase in the group's revenue, it is expected that the group's net profit will decrease by approximately 40% to 50% compared to the net profit of about HKD 187.3 million in the same period of 2024. The decrease in net profit is mainly due to a reduction in profits from the group's business in the U.S. market, although improvements in profits from the group's businesses in other regions partially offset the decline in profits from the U.S. operations. The reduction in profits from the group's U.S. business is primarily attributed to the additional tariff costs, increased costs of automotive seat products due to compliance with newly issued regulatory standards, corresponding costs of displaying new products in retail stores, increased promotional efforts for older products, and the resulting increase in marketing expenses. Since the beginning of the year, in light of the escalating macroeconomic turmoil and uncertainty, particularly regarding tariff policy uncertainties, a prudent and conservative pricing strategy has been adopted during this period, prioritizing the retention of market share
