Feihe issues profit warning for first half of 2025 due to revenue and net profit decline

China-based infant formula maker Feihe has issued a profit warning ahead of its first-half results in August. Revenue could be down by up to 10%, with net profit potentially decreasing by 47% from the previous year. Feihe cited factors such as childbirth subsidies, government grant reductions, and inventory adjustments affecting whole milk powder products. Despite these challenges, the company anticipates a low single-digit revenue increase for 2025. A share buyback plan and dividend assurance were also announced. Feihe’s primary products include infant milk formula, adult milk powder, and liquid milk.

Feihe had previously issued a profit warning in 2023, but later reported an increase in net profit and revenue for 2024. The company attributed the profit slump to a decline in China’s birth rate.

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