November 5, 2008
Sales of Inner Mongolia Yili Industrial Group Co. plunged after the melamine scandal, resulting in a third-quarter net loss of RMB 226.04 million (US$33.1 million).
Third quarter operating revenue increased 41.16 percent on-year to RMB 7.6 billion, due to higher sales during the Beijing 2008 Olympic Games. Operating revenue in the first nine months of 2008 declined 29.67 percent on-year to RMB 19.11 billion, with net loss of RMB 109.18 million.
In the third quarter, sales expenses surged 84.59 percent on-year to RMB 1.97 billion due to higher advertising and marketing expenses, with loss per share reaching RMB 0.28, Yili said.
Yili said its domestic sales have recovered to 80 percent of its normal level before the tainted milk scandal.