Nongfu Spring first-half profit rises 17% to US$1.32B
Tea business outpaced other beverage categories in the first half of 2026, while expanding water sources and improving margins supported overall performance.
CHINA – China’s bottled-water giant Nongfu Spring reported a 16.7% year-on-year increase in first-half net profit to 8.88 billion yuan (US$1.32B), supported by strong growth in its tea beverage business despite what the company described as a “complex” consumer environment.
Revenue reached 29.7 billion yuan, up 16% from the same period last year, while gross profit increased 17.1% to 18.1 billion yuan (US$2.69B).
Tea beverages remained the company’s largest revenue contributor, generating 13.122 billion yuan (US$1.95B), a 30.1% year-on-year increase and accounting for 44.2% of total revenue.
The packaged drinking water business generated 9.641 billion yuan (US$1.34B), up 2.1% and representing 32.4% of total revenue. Functional beverages contributed approximately 3.348 billion yuan, an increase of 15.5%, while juice beverages generated about 2.922 billion yuan, up 14%.
Nongfu Spring said it continued to expand its water-source network during the first half of 2026, adding Jiaozi Snow Mountain in Yunnan and the Leiqiong Haikou Volcanic Cluster in Hainan. The additions increased its nationwide network to 17 major water sources.
The company also continued its “The Deeper into the Mountains, the Better the Water Quality” sourcing campaign, inviting world champions, industry experts, employees and their families to visit its water sources and production facilities.
Nongfu Spring said it used mainstream media and influencer networks to support the campaign and strengthen consumer trust in its brand.
The company said it would continue to strengthen product innovation, supply chain development and channel capabilities while meeting consumers’ evolving needs through a wider range of higher-quality products.
Profitability also improved during the period. First-half gross margin increased 0.6 percentage points year-on-year to 60.9%, mainly due to the higher contribution from higher-margin tea beverages and lower procurement costs for raw materials including juice and sugar.
Administrative expenses as a proportion of revenue declined from 4.2% to 3.8%, which the company attributed to further improvements in operational efficiency.
The company said its overall profitability remained stable during the period, with growth in tea beverages supporting revenue performance while packaged water continued to provide a significant contribution to the group’s sales.
Nongfu Spring’s first-half results come as the company continues to invest in product innovation, water-source development, brand building and distribution capabilities across China.
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