On March 19, CK Hutchison Holdings (hereinafter referred to as “CK Hutchison”), the parent company of Watsons, released its full-year results for 2025. The report shows that total revenue reached HK$507.297 billion, representing a year-on-year increase of 6.4%.
According to the financial report, the retail division—anchored by Watsons—delivered a steady performance throughout the year. Growth was driven by improvements in the health and beauty business across Europe and Asia, while the China segment weighed on overall performance due to a challenging operating environment, becoming the primary constraint on divisional growth.
As the world’s largest international health and beauty retailer, the retail division remains the largest contributor to CK Hutchison’s revenue. In 2025, the division recorded revenue of HK$209.267 billion on a post-IFRS 16 basis, up 10% year-on-year, with EBITDA reaching HK$27.909 billion, an increase of 9%. On a local currency basis, revenue grew 6%, while both EBITDA and EBIT increased by 5%, indicating stable core profitability.
As of December 31, 2025, Watsons operated 17,114 stores across 31 markets worldwide and had 183 million loyalty members, further strengthening its retail network and customer base. In terms of cost structure, health and beauty-related products accounted for a significant portion of the division’s cost of goods sold, which rose to HK$101.676 billion in 2025 from HK$94.091 billion in 2024, reflecting both product mix optimization and business expansion.
From a regional perspective, Europe and Asia (excluding China) were the main growth engines. Improvements in the health and beauty segment drove overall divisional performance. In 2025, the retail division generated HK$155.856 billion in revenue in Europe, with health and beauty as the dominant contributor. EBITDA in Europe reached approximately HK$18.9 billion, with EBIT at around HK$14.2 billion, translating to an EBITDA margin of about 12.8%. Growth was mainly supported by strong performances in key markets such as the UK and Poland, as well as increased warehouse income.
However, CK Hutchison’s retail business in Mainland China (including Hong Kong) faced notable pressure. In 2025, revenue from Mainland China reached HK$24.427 billion, up only 0.3% year-on-year, accounting for approximately 5% of the group’s total revenue.
In contrast, the health and beauty business in Asia (excluding China) generated approximately HK$54.7 billion in revenue, representing around 6% growth in local currency terms. Key growth markets included the Philippines and Malaysia, with the Philippines standing out as a particularly strong performer.
Despite this, the Mainland China health and beauty business encountered significant operational challenges, which partially offset the division’s overall growth and became the core issue for the year. Specifically, in 2025, the Mainland China health and beauty segment recorded revenue of HK$13.265 billion, down 2% year-on-year. The store network shrank by 7% to 3,465 stores, while EBITDA plunged 74% to just HK$122 million, highlighting severe margin pressure.
The report attributes the pressure in China primarily to intensified market competition and shifts in consumer behavior. In response, Watsons is advancing transformation along three key directions: first, optimizing product assortment with a stronger focus on developing and promoting own-brand products; second, improving the quality of its offline store network while strengthening online capabilities to drive omnichannel (O+O) integration and traffic; and third, refining the customer journey to enhance engagement among its 183 million loyalty members. Meanwhile, the group continues to pursue new store openings, refurbishments, and technology investments to improve operational efficiency and offset adverse market conditions.
Notably, to strengthen its online capabilities, the number of “dark stores” in China (small fulfillment centers dedicated to online orders) surged from 131 at the end of 2024 to 412 by the end of 2025. This expansion supported the growth of O+O channels, with online orders accounting for 29% of total sales, up 7 percentage points year-on-year.
CK Hutchison emphasized in the report that despite current challenges, it remains confident in the long-term potential of the China market. Going forward, the group will continue to focus on core categories, leveraging product innovation and omnichannel integration to mitigate market pressures and unlock new growth opportunities.
