Mixue Shares Slide as Profit Drop and Rising Costs Bite
The company said rising staff, marketing and product-quality costs pressured margins even as revenue increased 2.3% to 15.22 billion yuan.
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6 Articles
Mixue Group shares fell 7.11% on the Hong Kong Stock Exchange, keeping the fall trajectory for the second consecutive day, after the Chinese network of fast-food and teas spread that the increase in operational costs damaged the profit in the first semester. Exclusive material for subscribers. To have full access, access the link of the subject and register.
Mixue's profitability is currently in a precarious situation due to rising operating costs.
MIXUE Group (SEHK:2097) Stock Faces Margin Squeeze Despite Steady Revenue
The market has kept MIXUE Group on a short leash, with the stock down about 9% over the past week and nearly 20% over three months even after the latest earnings release. Yet the headline from these results is not about a collapse in demand. The key story is a squeeze on profitability, with trailing net margin at 16.2% compared with 18.1% a year earlier and earnings growth over the past year running well below the five year pace. Short term trad…
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