March 29, 2013

Mengniu's profits fall in 2012 on the back of declining sales with net earnings in the 12 months to the end of December dropped by 19.1% to CNY1.44 billion (US$231.7 million).

This was reported by the company on Wednesday (Mar 27).

Operating profit in the period amounted to CNY1.50 billion (US$241 million) compared to CNY1.90 billion (US$306 million) last year.

The Hong Kong-listed company attributed the loss to shrinking sales in 2012 and said it will boost its cooperation with Denmark's Arla Food to tighten food safety standards in the coming year.

Mengniu's sales are still being affected by the 2008 milk safety scandal, after toxic chemicals were found in its dairy products. Revenues in 2012 were down 3.5% to CNY36.08 billion (US$5.81 billion).