March 28, 2012

Mengniu Dairy Net gains US$0.25 billion in 2011

Last year, China Mengniu Dairy Company Limited gained RMB1.59 billion (US$0.25 billion) net profit, which increased 28.45% from RMB127 million (US$20.13 million) in 2010.

Meanwhile, the total revenue reached RMB37.389 billion (US$5.93 billion), hiking 23.5% from RMB30.265 billion (US$4.8 billion) in 2010; the basic earnings per share were RMB0.908 (US$0.14); the gross profit margin was 25.7%. The annual production capacity of the company reached 7.05 million tonnes of milk products by the end of 2011.

The revenue brought in from liquid milk product business reached RMB33.701 billion (US$5.34 billion), rising 25.4% from RMB26.87 billion (US$4.29 billion) in 2010, and taking over 90% of the total revenue. The revenue from the liquid milk product business took 88.8% of the total revenue in 2010. The operating profit from the liquid milk product business was RMB2.026 billion (US$0.32 billion), increasing 10.35% from RMB1.836 billion (US$0.29 billion) in 2010.

In detail, RMB20.8376 billion (US$3.3 billion) revenue came from ultra-heat-treated (UHT) milk business, rising 24.1% from RMB16.7904 billion (US$2.66 billion) in 2010, and taking 61.8% of the total revenue in liquid milk product business; RMB8.3096 billion (US$1.32 billion) from milk beverage business, increasing 13.3%, and taking 24.7% of the total revenue in liquid milk product business; RMB4.554 billion (US$0.72 billion) from yoghourt business, growing 65.9%, and taking 13.5% of the total.

At the same time, the revenue came from ice cream business was RMB3.256 billion (US$0.52 billion), hiking 4.7%, and taking 8.7% of the total revenue of the company, according to the 2011 annual financial report issued by the company on March 27.

The company aims to continue to expand business in some overseas markets, such as Singapore and Mongolia, in order to improve its brand competitiveness in international market in 2012.