On January 31st, Huabao Flavours & Fragrances Co., Ltd. (Huabao Flavours & Fragrances), a leading Chinese daily flavors and fragrances company, released its performance forecast for the year 2023. It is expected that the net profit attributable to shareholders of the listed company will be between 300 million and 440 million yuan ($41.77 million-$61.26 million), representing a decline of 39.3% to 58.62% compared to the same period last year. During the reporting period, Huabao Flavours & Fragrances’ net profit, after deducting non-recurring gains and losses, is estimated to be between 210 million and 290 million yuan ($29.24 million-$40.37 million), a year-on-year decrease of 45.2% to 60.32%.
In the announcement, Huabao Flavours & Fragrances stated that in 2023, the company experienced changes in its product structure due to multiple factors such as changes in downstream market demand and customers’ independent fragrance adjustments. This led to a decrease in operating income and gross profit margin, resulting in a decline in net profit attributable to shareholders of the listed company. Additionally, during the reporting period, the company expects non-recurring gains and losses to be approximately 80 million to 160 million yuan ($11.14 million-$22.27 million).
According to publicly available information, Huabao Flavours & Fragrances Co., Ltd. was established in 1996 and is primarily engaged in the research, development, production, sales, and services of tobacco flavors, food flavors, daily flavors, and food ingredients. From 2014 to 2022, it ranked first in the industry in terms of sales. Its subsidiary, Xiamen Hupo, holds a leading position in the domestic market for fragrance and disinfection in the sub-segment of daily flavors. Its customers include Qingwawangzi, Lanju, and Liby, among others.
