Yeo Hiap Seng Limited, a prominent food and beverage group in Asia, has announced a significant increase in net profit for the financial year ending 31 December 2025, reaching S$21.1m. This comes despite a challenging year marked by an 11% decline in group revenue to S$292.4m, attributed to weakened consumer spending and heightened competition in key markets.
The company’s gross profit margin narrowed by 1.7 percentage points to 31.5%, primarily due to reduced production volumes. However, Yeo Hiap Seng managed to offset some of these challenges through cost optimisation efforts, even as it incurred S$2.8m in costs from implementing new enterprise resource planning software.
A notable contributor to the company’s improved net profit was other gains amounting to S$45.3m, largely from a 50-year land lease extension for its Guangzhou property. The company maintains a robust balance sheet, with cash reserves, including fixed deposits, totalling S$190.8m.
Looking ahead to 2026, Yeo Hiap Seng plans to focus on strengthening its fundamentals through margin improvement, innovation, and portfolio expansion. The company aims to launch smaller pack sizes to cater to lower-income consumers whilst scaling premium products for the middle class. Additionally, Yeo Hiap Seng intends to leverage external partnerships to accelerate product development, particularly targeting the US and European markets.
The Board of Directors has proposed a final dividend of two pence per share for fiscal year 2025, reflecting confidence in the company’s strategic direction and financial health.
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