March 1, 2012

Yili 2011 operating revenue up 26%

Inner Mongolia Yili Industrial Group Co Ltd on February 28 issued the annual report of 2011, showing operating revenue reached RMB37.45 billion (US$5.94 billion), growing 26% over a year earlier, and net profits attributable to shareholders and basic earnings per share reached RMB1.809 billion (US$0.29 billion) and RMB1.13 (US$0.18).

Total revenue from the milk powder business exceeded RMB5.6 billion (US$0.89 billion) and especially, the high-end milk powder, represented by "Jinling crown" infant formula" witnessed a revenue growth of more than 81%.

According to the annual report, the dairy giant invested about RMB1.4 billion (US$0.22 billion) in milk sources. Its rival Mengniu has built large modern farms and spent over RMB3 billion (US$0.48 billion) in milk sources. Mengniu's investments in milk sources in the first half of 2011 reached RMB700-RMB900 million (US$111.11-$142.86 million).

Dairy experts said the dairy industry eliminated about 45% companies in 2011. Meanwhile, the industry concentration enhancement has promoted big companies to continue to increase investments in milk sources, production and management so that the entire industry is moving into the track of healthy development.