Net Profit Plummets 15.97% on Weakening Sales
China Tourism Group Duty Free Corporation (CTG Duty-Free) announced a sharp decline in profitability for its 2025 fiscal year. Net profit attributable to shareholders fell 15.97% to RMB 3.586 billion. The company's total revenue also contracted, dropping 4.92% year-over-year to RMB 53.694 billion. The performance translated to a basic earnings per share of RMB 1.7332.
These figures signal significant headwinds for the travel retail giant, reflecting persistent challenges in its core business. The dual decline in both top-line revenue and bottom-line profit points to pressures on sales volume and profit margins, a worrying sign for investors monitoring the Chinese consumer space.
Performance Lags Broader Market Recovery of 5.1%
CTG Duty-Free's poor results stand in stark contrast to the recovering Chinese consumer market. China's overall cosmetics retail sales grew 5.1% to a record RMB 465.3 billion in 2025, according to the National Bureau of Statistics. This divergence suggests CTG is failing to capitalize on the rebound in consumer sentiment that has benefited other major players.
Global beauty conglomerates like L'Oréal and Estée Lauder Companies (ELC) have reported strengthening sales and a return to growth in mainland China during the same period. For instance, ELC posted double-digit retail sales growth in the country in the second quarter of its fiscal 2026. CTG's inability to match this momentum indicates its travel retail model may be misaligned with current consumer purchasing habits, which show renewed strength in domestic and e-commerce channels.
