August 30, 2013

China Mengniu Dairy Co., Ltd. (Mengniu), China's largest dairy producer, announced on August 29 that its earnings increased by 16.3% in the first half of 2013.

Mengniu's net income rose to RMB749.5 million (US$122.46 million) from RMB644.7 million (US$105.34 million) in the same period of 2012, while sales revenue increased by 13.3% on-year to RMB20.67 billion (US$3.38 billion) from 2012' RMB18.24 billion (US$2.98 billion).

Mengniu is strengthening the control of its milk supply chain and expanding its infant formula business. The company has turned to France's Danone and Denmark's Arla Foods to win back consumer confidence in the Chinese market, after a series of food-safety scandals gravely ruined the reputation of domestically-made dairy products.