Nongfu Spring Profit Growth Rebounds as Bad Publicity Fades
(Bloomberg) -- Nongfu Spring Co.’s shares surged after first-half profit climbed to the highest levels since at least 2019, signaling recovery from a spell of negative publicity that weighed on the Chinese bottled water giant’s reputation.
Earnings rose 22% to 7.6 billion yuan ($1.1 billion) in the first six months of the year, reversing a decline in the latter half of last year, according to a filing Tuesday. That exceeded the 7.3 billion yuan average of analysts’ estimates compiled by Bloomberg. Over the same period, revenue rose 16% to 25.6 billion yuan.
Its Hong Kong-listed shares jumped as much as 6.7% on Wednesday, the most since May. That boosted gains so far this year to more than 40%, outperforming the Hang Seng index’ 27% climb.
Sales of the group’s eponymous bottled-water products returned to growth, climbing 11% to 9.4 billion yuan — shy of an estimated 9.5 billion yuan — as negative public opinion waned.
The beverage group backed by billionaire Zhong Shanshan had last year faced a backlash from nationalist consumers over the brand’s packaging, which they claimed had elements reminiscent of Japan. Netizens had also called for a boycott of Nongfu Spring’s products after the founder of key rival Hangzhou Wahaha Group Co. passed away.
(Updates with share move.)
©2025 Bloomberg L.P.
