Dongpeng Beverage 3Q25 Quick Interpretation: Overall, the biggest issue for Dongpeng this quarter is the continued slowdown in its core energy drink segment, leading to slightly underwhelming overall performance compared to market expectations.
By category, energy drinks achieved revenue of 4.2 billion yuan, a year-on-year increase of 15%. The single-quarter growth rate hit a three-year low, primarily due to the fact that, as Dolphin Research previously emphasized, the current scale of energy drinks is approaching a bottleneck, so the slowdown in growth was within Dolphin Research's expectations.
Dongpeng's 'second growth curve': Electrolyte drinks achieved revenue of 1.35 billion yuan, a year-on-year increase of 84%. From the trend, after four consecutive quarters of over 200% high-speed growth, the quarter-on-quarter growth rate has declined, but it still maintains a relatively high growth rate. Currently, the proportion of electrolyte water has exceeded 20%.
Other beverages achieved revenue of 550 million yuan, a year-on-year increase of 94%, and the growth rate continues to accelerate on a low base.
By region, although other regions outside Guangdong still maintained a high growth rate of 42%, the biggest issue is that in the two Guang regions, where Dongpeng started the earliest and has been cultivating and deepening for many years, the growth rate in the third quarter directly dropped to single digits. Additionally, according to Dolphin Research's calculations, the single-store revenue in Guangdong has shown no growth in the third quarter, indicating that Dongpeng's home market has basically reached its growth ceiling.
On the profitability side, from the gross profit margin perspective, due to the volume increase of low-margin electrolyte water and other beverages, the overall gross profit margin slightly declined by 0.4 percentage points to 45.2%. On the expense side, due to the company's front-loaded expenses in the second quarter combined with refined operations, the overall expense ratio has declined. Ultimately, Dongpeng's core operating profit increased by 2.1 percentage points to 27.4%. For more detailed information, please follow Dolphin Research's specific commentary on the company. $EASTROC BEVERAGE(605499.SH)
