Want Want China warns of 'major crisis' as profits plunge 38%, yet still earns billions

Want Want China Holdings, a major Taiwanese food conglomerate operating in China, has issued a profit warning, signaling a significant downturn. The company anticipates a roughly 6% decrease in revenue and a substantial 38% drop in net profit attributable to the parent company for the first quarter of its 2026 fiscal year (April-June). Chairman Tsai Eng-ming acknowledged this as a "major business crisis" in an internal letter to employees, urging them to take it seriously.

Despite this stark warning, Want Want China has consistently generated over 10 billion yuan (approximately $1.4 billion USD) in annual profits from the Chinese market over the past five fiscal years. In the 2025 fiscal year, which ended March 31, 2026, the company reported revenues of 24.4 billion yuan and a net profit of approximately 3.8 billion yuan (over 17 billion New Taiwan Dollars).

The company's core business remains its dairy and beverage segment, which contributed 12.34 billion yuan in revenue in FY2025, making up half of its total income. "Want Want Milk," a classic drink familiar to generations of Chinese consumers, maintained annual revenues around 11 billion yuan but showed signs of fatigue, with a slight 0.3% revenue decrease in FY2025. Chinese media analyses suggest this slowdown is due to the shrinking market for flavored milk beverages and a rising consumer preference for healthier products, with many netizens criticizing Want Want Milk's high sugar content. The company is reportedly adjusting the sugar levels in response.

Furthermore, Want Want China faces challenges from evolving distribution channels, with the decline of traditional wholesale networks and the rise of bulk snack retailers. The company's announcement noted a double-digit decline in revenue from traditional wholesale channels in the first quarter, impacting distributors. Despite these headwinds, Want Want China's profitability still surpasses that of fellow Taiwanese food giants Master Kong (Ting Hsin International Group) and Uni-President China Holdings. In FY2025, Master Kong reported revenues of approximately 79 billion yuan and profits of 4.5 billion yuan, while Uni-President China had revenues of 31.7 billion yuan and profits of 2.05 billion yuan. Want Want China's 3.8 billion yuan profit, on lower revenue, demonstrates its strong earning capacity.

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Major business crisis