Mei-Shi-KY's First-Half Profit Surges Over 70% with Q2 EPS at 1.88 Yuan, Highest in 5 Years

Mei-Shi-KY (2723-TW) today announced its first-half financial results. Net profit after tax reached 5.75 billion yuan, up nearly 75% year-on-year, with earnings per share (EPS) at 3.19 yuan. Notably, Q2 EPS was 1.88 yuan, a 2.9-fold increase from the same period last year, marking a 5-year high for a single quarter. Gross margin, operating margin, and net margin all improved by 2.1 to 5.5 percentage points compared to the same period last year.

Mei-Shi-KY stated that the Q2 results reflected stable operations in the U.S. and Taiwan markets, as well as strategic adjustments in China, including closing underperforming stores, which effectively improved overall profitability. Excluding the impact of extreme weather in the U.S. on Q1 revenue, the company expects even better first-half results. The outlook for the second half and next year remains positive, with continued improvement in profitability.

The U.S. market contributed 2.4 billion yuan in revenue in Q2, accounting for 58% of total revenue. Meanwhile, the Taiwan market, which has been aggressively promoting new store formats, achieved 7 consecutive quarters of revenue growth, now accounting for 20% of total revenue.

Mei-Shi-KY plans to further expand its market share in Taiwan's bakery sector through product innovation and the introduction of new store formats. In China, the company is following its previously announced strategy to exit regions and stores with underperforming profitability. By the end of June, the total number of stores has been reduced to fewer than 300, which is expected to significantly improve this year's profit and loss performance.