September 2, 2010

China's Mengniu Dairy posts decrease in net profit for H1

Mengniu reported first half revenue increased 19.31% on-year to RMB14.43 billion (US$2.12 billion) while net profit dropped 6.5% on-year to RMB619 million (US$91 million).

Gross margin in the first half of 2010 decreased to 26.2% from 26.7% in the first half of 2009.

Mengniu's sales and marketing costs increased to RMB2.6 billion (US$382 million) in the first half of 2010 from RMB1.94 billion (US$285 million) in the first half of 2009, amounting to 18% of total revenue.

Revenue from fresh milk sales increased 21.1% on-year to RMB12.46 billion (US$1.83 billion) in the first half of the year, accounting for 86.4% of total revenue. Mengniu also expanded production capacity to 6.14 million tonnes in the first half of 2010.