Softcare Interim Profit Up 46%, Payout Ratio Rises to 66%

Softcare (HKEX: 2698) reported a 46% rise in interim profit for the six months ended June 30, 2026, the company said in its first results presentation since listing. The board declared an interim dividend of US$0.08 per share, totaling $49.7 million. That brought the payout ratio to about 66%, up from roughly 45% for the full year 2025.

The higher payout signals Softcare's commitment to shareholder returns alongside business expansion, the company said. Chairman Shen Yanchang attributed the long-term growth to favorable demographic trends across emerging markets, which are driving demand for baby care, feminine care and household care products. Softcare's local manufacturing strategy reduces exposure to policy changes targeting the resources sector, he said. Its presence across multiple countries diversifies operational risk.

Revenue Growth Across Regions

Growth was broad-based across Softcare's core African markets. Revenue from Western Africa rose 24.4% year on year. Eastern and Central Africa posted gains of 29.3% and 29.4%. The company also uses established production bases to serve neighboring countries where it does not yet have local manufacturing. Revenue from other markets in Eastern, Central and Western Africa, served by exports, jumped 97.5%, 44.5% and 51.3%.

Latin America was the fastest-growing region. Regional revenue surged 122.7% to $19.4 million. Peru alone grew 57%. The company started operations at its hygiene products plant in Peru in April 2026, following the launch of local production in El Salvador in August 2025. Chief Financial Officer Lung Shei Kei said the results were supported by steady expansion in core markets, rapid development in Latin America and rising exports from existing bases.