Media Updates, page-12404

I think you are confusing the financial results for 1H23 with the outlook guidance for 2H23. They largely met what was expected for 1H23 results. My guess is that there was some optimism that this momentum would continue into 2H23, that SAMR approval was right around the corner etc.Remember that just the day before results, we learned that SAMR audit was about to commence, so that added to the optimism.

Then, the outlook statement for 2H23 tamped down a lot of this optimism. The statement indicates revenue growth will be lower for the full year (low double digits) than it was in 1H23 (18%). It mentions the benefit of FX rates will be less than expected. It mentions higher ingredient costs, risks with SAMR and China label inventory transition etc. Much of this was not specifically known prior to the results and hence the market reacted. IMO, management is conservative in their outlook and many of the risks are manageable.

They've demonstrated outperformance in challenging circumstances in the first half, so it keeps me fairly optimistic (but others do not necessarily share my optimism).