We are a multinational hygiene product corporation principally engaged in the development, manufacturing and sales of baby and feminine hygiene products, including baby diapers, baby pants, sanitary pads and wet wipes, focusing on the fast-growing Emerging Markets, including Africa, Latin America and Central Asia. During the Track Record Period, we generated the majority of our revenue from sales to customers in Africa. According to Frost & Sullivan, (i) in terms of sales volume in 2024, we ranked first in both the baby diapers market and the sanitary pads market in Africa, with a market share of 20.3% and 15.6%, respectively; and (ii) in terms of revenue in 2024, we ranked second in both the baby diapers market and the sanitary pads market in Africa, with a market share of 17.2% and 11.9%, respectively. Leveraging our multinational operational strategies implemented for over 15 years, we have become a leading corporation in the hygiene product industry in various countries in Africa as well as a key player in the Emerging Markets. Through building our overseas management team and recruiting local talent, which allow us to optimize the human resources by collaboration, we have achieved efficient multinational operations.
Upholding our “Consumer-oriented” philosophy, we focus on developing products that cater to the diversified needs of the local markets and strive to satisfy the ever-changing market demand by rapidly updating our products.
The development of our Group can be traced back to the trading of hygiene products by Sunda Group in 2009. Sunda Group transformed into an integrated corporation with sales and manufacturing capabilities in 2018. In order to establish a separate platform for the hygiene product business for the benefit of our long-term development, we have undergone a reorganization.
We have established an extensive sales network covering over 30 countries across Africa, Latin America and Central Asia, which we believe is one of our competitive strengths that differentiates us from our competitors. As of April 30, 2025, we had 18 sales branches in 12 countries, and an extensive sales network covering over 2,800 wholesalers, distributors, supermarkets and other retailers in total. Leveraging our extensive sales network, we achieved rapid growth during the Track Record Period. In 2024, our sales volume of baby diapers and sanitary pads reached 4,122.7 million and 1,634.3 million pieces, representing a rapid increase from 2022 at a CAGR of 17.3% and 30.6%, respectively.
In 2018, we began localized manufacturing of baby diapers, baby pants, sanitary pads and wet wipes in Ghana. Since then, we have established a stable global supply chain system centered on multinational manufacturing. According to Frost & Sullivan, we have the most production plants in Africa among hygiene product manufacturers, and we ranked first in both the baby diapers market and the sanitary pads market in Africa in terms of production volume in 2024. As of April 30, 2025, we had eight production plants and 51 production lines in Africa, with a total designed production capacity(1) of 6,301.2 million pieces of baby diapers, 352.1 million pieces of baby pants, 2,854.1 million pieces of sanitary pads and 9,303.5 million pieces of wet wipes per annum.
During the Track Record Period, our revenue and net profit recorded significant growth. Our revenue increased significantly by 28.6% from US$319.9 million in 2022 to US$411.4 million in 2023 and increased by 10.5% from US$411.4 million in 2023 to US$454.4 million in 2024, and also increased by 15.5% from US$139.6 million in the four months ended April 30, 2024 to US$161.3 million in the four months ended April 30, 2025. Our net profit increased significantly by 251.7% from US$18.4 million in 2022 to US$64.7 million in 2023 and increased by 47.0% from US$64.7 million in 2023 to US$95.1 million in 2024, and also increased by 12.5% from US$27.7 million in the four months ended April 30, 2024 to US$31.1 million in the four months ended April 30, 2025.
The Emerging Markets that we target are characterized by population growth and consumption upgrade. According to Frost & Sullivan, the number of births in Africa has been growing at a globally highest CAGR of 1.8% from 2020 to 2024, and its demographic structure has over 50% of its population under the age of 20. According to Frost & Sullivan, the new birth population in Africa, Latin America and Central Asia in 2024 was 48.2 million, 10.1 million and 2.0 million, representing 36.5%, 7.7% and 1.4% of the global new birth population in 2024, respectively. The Emerging Markets have seen sustained growth in the market penetration rates of baby and feminine hygiene products, with considerable room for further growth compared to developed countries. For example, in 2024, the market penetration rate of baby diapers and baby pants in Africa was around 20%, lower than the market penetration rates of baby diapers and baby pants in the European, North American and Chinese markets, ranged from around 70% to 86%, and the market penetration rate of sanitary pads in Africa was around 30%, lower than the market penetration rates of similar products in the European, North American and Chinese markets, which ranged from around 86% to 92%.
OUR BRANDS AND PRODUCTS
We offer a variety of baby and feminine hygiene products under various brands, including our core brand Softcare, as well as Veesper, Maya, Cuettie and Clincleer. Each brand caters to a distinct consumer group. This multi-brand strategy allows us to effectively meet the needs of diverse consumer segments, expanding our overall consumer base. Softcare, our core brand, is positioned as a mid-premium brand, targeting middle to high-end consumers with higher spending power looking for high quality products. Softcare started as a baby diapers and sanitary pads brand, and subsequently extended to cover other hygiene product categories, including baby pants and wet wipes in 2018. During the Track Record Period, the majority of our revenue was attributable to Softcare products. After years of development, Softcare has become a reputable household brand for baby and feminine hygiene products in many African countries with a leading market position.
Our products include baby diapers, baby pants, sanitary pads and wet wipes. During the Track Record Period, baby diapers were the main source of our revenue.
Source: Softcare (02698) Prospectus (IPO Date : 2025/10/31) |