Financial Performance and Key Metrics - For the six months ended September 30, 2025, the group's revenue decreased by 6% to HKD 3.2 billion, primarily due to weak demand, higher trade spend, and competitive pricing in the Chinese mainland operation [2] - The gross profit margin decreased to 51.1%, with savings from favorable raw material costs and production optimization partially mitigating the adverse sales performance [2] - Profits from operations decreased by 4% to HKD 247 million, mainly attributable to a decline in gross profit [2] - Profits to shareholders increased by 1% to HKD 172 million due to lower finance costs and income tax [2] - Earnings per share was HKD 0.16, an increase of 2% compared to last year [3] - Capital expenditure for the period was HKD 57 million, slightly higher than last year [3] - As of September 30, 2025, cash on hand was HKD 1.27 billion, with a gearing ratio of 20% [3] Business Line Performance - The Chinese mainland unit's total revenue was HKD 2.9 billion, down 7% versus last year, with operating profit decreasing by 14% to HKD 326 million [8] - Hong Kong operations maintained strong performance but were temporarily affected by Vitaland, Macau, and exports to the United States [5] - Australia and Singapore units sustained growth, with Australia-New Zealand revenue increasing by 5% in local currency [12] - The Hong Kong beverage operation sustained its leadership market shares in both plant milk and tea categories despite a slower retail environment [11] Market Performance - The Chinese mainland unit remains the largest operation by revenue at 55% of the group, while Hong Kong operations account for 34% of total group sales [8] - The plant milk category in China has declined by 10%, while the tea category's growth decreased from double digits to only 5% [9] - In Australia and New Zealand, the adoption of plant milk continues to develop steadily, contributing to revenue growth [12] - The Philippines market for plant-based products continues to grow healthily, with double-digit year-on-year growth since entry [14] Company Strategy and Industry Competition - The company is focusing on improving its capabilities in the Chinese mainland to enhance top-line performance, particularly in new retail channels [6][10] - In Hong Kong, the company aims to accelerate growth in the second half of the financial year [15] - The company is also working on improving its route to market in the general trade channel while expanding into new channels [10] - Cost control measures are being implemented to reduce corporate expenses and improve profitability [5][15] Management Comments on Operating Environment and Future Outlook - Management acknowledged the short-term challenges in the market but expressed confidence in the long-term potential for continuous scaling up [7][15] - The company plans to strengthen resources in the Chinese mainland to improve performance in general trade and accelerate growth in new channels [6][15] - The management highlighted the importance of creative product innovations to drive market share in Hong Kong [11] Other Important Information - The imposition of tariffs by the United States has negatively impacted the North American business, prompting adjustments in the commercial strategy [12] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - The company reported a resilient organic sales growth of 2.8% in Q1, with a real internal growth (RIG) of 0.7% and pricing contributing 2.1% [13][36] - Sales were negatively impacted by foreign exchange movements, although the impact was less than the previous year [13][14] - The company is on track to deliver CHF700 million in incremental cost savings in 2025, in addition to over CHF1.2 billion from ongoing efficiency initiatives [4][36] Business Line Data and Key Metrics Changes - In Zone Americas, organic growth was flat, with positive RIG in North America and strong growth in Latin America, driven by pricing actions in confectionery and coffee [19][20] - Zone AOA delivered positive growth across all categories, particularly in confectionery, with double-digit growth in Maggi Cooking aids and emerging market PetCare [20][21] - Zone Europe generated broad-based growth across markets and categories, with improving market share trends [22][23] - The Health Science segment showed mixed performance, with double-digit growth in premium brands but slower growth in Nature's Bounty and Vital Proteins [24][26] Market Data and Key Metrics Changes - Consumer sentiment remained subdued across various regions, particularly in China, where organic growth was driven by sales phasing rather than underlying consumption [21][22] - The company noted fragile consumer confidence in many geographies, exacerbated by macroeconomic and political uncertainties [17][18] Company Strategy and Development Direction - The company is focused on accelerating growth through investments in key brands and categories, supported by the Fuel for Growth savings program [3][4] - The strategy includes harmonizing organizational structure in Europe and enhancing R&D capabilities to support growth [5][6] - The company aims to strengthen its core brands while addressing underperformers and expanding into new growth platforms, particularly in Nutrition and women's health [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the uncertain environment and continue to accelerate growth [12][43] - The company is closely monitoring consumer reactions to pricing changes and the impact on RIG, particularly in light of soft consumer demand [17][18] - Management highlighted the importance of maintaining consumer penetration while managing pricing strategies in response to input cost inflation [15][16] Other Important Information - The company expects organic sales growth to improve compared to 2024, with guidance for a UTOP margin at or above 16% as investments for growth continue [36][37] - The company is actively managing the impact of currency fluctuations and tariffs on its pricing strategies [66][70] Q&A Session Summary Question: Impact of positive sales phasing in China and Nespresso - Management indicated a relatively small impact of about 20 basis points at the group level from sales phasing in China and Nespresso, with uncertainty on potential unwinding in Q2 [49][50] Question: Guidance for organic sales growth - Management confirmed expectations for organic sales growth to strengthen throughout the year, but cautioned against expecting consistent quarter-on-quarter improvements [51][52] Question: Performance in infant nutrition - Management acknowledged softness in the infant nutrition category, particularly in the U.S., and emphasized the need to address underperformance in Gerber [41][54] Question: Pet food performance - Management noted slightly negative pricing in pet food due to a mild commodity environment, but expressed confidence in the category's strength and growth potential [62][63] Question: Currency and tariff impacts - Management provided insights on the impact of currency fluctuations on UTOP margins and confirmed that tariffs would affect certain products, but emphasized the company's ability to manage these challenges [66][70] Question: Reorganization in Europe - Management explained the reorganization aims to enhance operational efficiency and effectiveness, aligning Zone Europe with other zones to improve market responsiveness [84][85] Question: Consumer sentiment and inflation - Management highlighted cautious consumer sentiment due to inflation and economic uncertainties, but expressed confidence in the company's strategy to navigate these challenges [88][90]