Herbs Group (02593) announced its interim results for the six months ended June 30, 2025. The group recorded revenue of HK$117 million, representing a decrease of 0.44% year-on-year. The company reported a net loss of HK$7.535 million, compared to a profit of HK$7.483 million in the same period last year. Basic loss per share was 5.65 HK cents.
According to the announcement, the decline in profitability was primarily attributed to reduced gross profit during the reporting period, mainly due to increased promotional activities. Additionally, advertising and promotional expenses increased during the period, including but not limited to online advertising, offline advertising, and engagement of celebrities and key opinion leaders (KOLs). Staff costs also rose due to increases in salaries, allowances and other benefits, as well as an increase in headcount during the reporting period.