Despite revenue loss of 20 per cent in 2025, Chinese retailer sets sights on profitability
Major Chinese fruit retail chain Pagoda has released its 2025 results, reporting a revenue loss of over 20 per cent year on year.
According to the results report, which was released at the end of March, the company made Rmb8.17bn (US$1.19bn) in 2025 – a decrease of 20.4 per cent on the year before. Its full-year loss amounted to RmB343mn (US$49.84mn), narrowing by 14 per cent year on year.
Structurally, these losses were concentrated in the first half of the year with operations improving in the second half. This coincided with the company’s efforts to optimise its store network.
Pagoda’s offline stores are predominantly operated under a franchise model, including both group-managed and entrusted-managed franchises. As of June 30, 2025, the total number of Pagoda stores decreased to 4,386, down 1,639 stores compared to the same period the year before.
The company said it had supported franchisees to relocate or close stores with high rents, labour costs, and poor operating performance, in order to concentrate more resources on high-quality stores. It sees the current retail operations as healthier, with significantly improved operational efficiency.
In the second half of the year, the company resumed its expansion efforts with a net increase of 82 stores to 4,468 and the proportion of franchised stores managed by the group increased to 81.4 per cent.
In the second half of the year, Pagoda’s gross profit margin rebounded from a low of 5 per cent in the first half of 2025 to 10 per cent, indicating a clear trend of profit recovery following the restructuring.
According to local industry reports, Pagoda has now lowered the barriers to entry for franchisees and released policy dividends in a bid to accelerate the recovery of its store network, moving forward.
