Softcare Reports 46% Interim Profit Growth as Emerging-Market Momentum Continues, Payout Ratio Rises to Approximately 66%

HONG KONG, Aug. 24, 2026 /PRNewswire/ -- Softcare Limited ("Softcare" or the "Company"; HKEX: 2698) recently held its first interim results presentation since listing, following the release of its results announcement for the six months ended 30 June 2026.

During the period, Softcare recorded revenue of US$332.7 million, representing year-on-year growth of 30.7%. Gross profit increased by 36.7% to US$119.1 million, while profit for the period rose by 46.0% to US$75.8 million. Adjusted net profit for the period, excluding the effects of listing expenses, foreign-exchange movements and share-based payment expenses, increased by 53.1% to US$78.6 million.

The Board declared an interim dividend of US$0.08 per share, amounting to approximately US$49.7 million and representing a payout ratio of approximately 66%, approximately 21 percentage points higher than the full-year dividend payout ratio of approximately 45% in 2025. The higher payout reflects Softcare's continued focus on shareholder returns alongside its ongoing business expansion.

1. Emerging-market fundamentals underpin long-term demand

At the results presentation, Shen Yanchang, Chairman of Sunda Enterprise Limited, Non-executive Director and Chairman of Softcare Limited, said the Company's long-term growth was underpinned by the favourable demographic and economic trends across emerging markets, which are driving the continued penetration of personal hygiene products, and sustained demand for baby care, feminine care and household care products across the markets.

Softcare's focus on the local manufacturing of essential consumer goods brings investment, technology, employment and tax revenue to the countries in which it operates, making its business less exposed to policy changes targeting the resources sector. Its presence across multiple countries helps diversify operational risks, while its local manufacturing capabilities allow the Company to respond more effectively to differences in consumer demand and market conditions.

Management believes that the operating experience accumulated in established markets can be adapted and replicated across additional countries, with business systems tailored to local consumption patterns and distribution structures.

2. African core remains resilient as Latin America accelerates

Growth remained broad-based across Softcare's core African markets. Revenue from Western Africa increased by 24.4% year on year, while Eastern and Central Africa recorded growth of 29.3% and 29.4%, respectively.

The Company also continued to use established production bases to serve neighbouring countries where it does not yet have local manufacturing facilities. Revenue from other markets in Eastern, Central and Western Africa increased by 97.5%, 44.5% and 51.3%, respectively, demonstrating the potential of this export-led market development model.

Latin America was Softcare's fastest-growing region during the period. Regional revenue increased by 122.7% to US$19.4 million, including growth of 57.0% in Peru. The commencement of operations at the Company's hygiene products plant in Peru in April 2026, following the launch of local production in El Salvador in August 2025, marked a further step in Softcare's local production strategy.

Lung Shei Kei, Chief Financial Officer and Joint Company Secretary of Softcare Limited, noted that the Group's performance was supported by steady expansion in its core markets, the rapid development of Latin America and increasing exports from established production bases to surrounding countries. 

3. Broader brand portfolio supports market penetration

Softcare is developing a diversified brand portfolio covering premium, mass-market and value segments to address differences in purchasing power, consumer preferences and competitive conditions across its markets.

Revenue from the core Softcare brand increased by 22.4% year on year. Cuettie and Veesper recorded growth of 43.8% and 60.2%, respectively, while revenue from Maya increased by 381.5%. As these brands all grew faster than the core brand, Softcare's overall brand mix became increasingly diversified.

The Company also began promoting its new Allround baby-pants brand in Kenya and Ghana in March 2026. In addition to expanding the product portfolio, the initiative is intended to educate consumers about the functional benefits of baby pants in markets where the category remains at an early stage of development.

Luo Jichao, Executive Director and Chief Executive Officer of Softcare Limited, said the Company is pursuing product-brand and corporate-brand development in parallel. Its multi-brand strategy is intended to meet increasingly differentiated consumer needs while strengthening the Company's ability to respond to varying competitive conditions.

4. Channel model enters pilot implementation

Softcare is also gradually evolving from a predominantly distributor-led model towards a more service-oriented channel system.

The Company has identified unmet service demand among small retail outlets in its markets and is developing a standardised, information-enabled distribution system to improve retail coverage and point-of-sale execution.

The model has entered pilot implementation and validation in selected markets. Softcare plans to proceed in a measured manner, refining the system through local trials before gradually replicating the model across additional markets.

5. Supply-chain scale may create market-share opportunities

Management also addressed potential pressure from geopolitical tensions, shipping disruption and rising raw-material costs.

Shen Yanchang noted that these factors may create short-term cost pressure, but could also accelerate the concentration of supply-chain resources towards larger branded manufacturers. With its scale procurement, stable supply and local manufacturing capabilities, Softcare may be better positioned to maintain product availability and capture additional market share over the medium term.

Looking ahead, Softcare will continue to balance sales volume, pricing, profitability and market share, while advancing its multi-country operations, local manufacturing, global supply chain, brand portfolio and distribution capabilities.

With a resilient African core, accelerating Latin American operations and a broader portfolio of brands and markets, the Company is continuing to strengthen the foundations for sustainable long-term growth across emerging markets.

SOURCE Softcare Limited