April 1, 2009
China's Bright Dairy reports losses of US$42 million in 2008
Shanghai-based Bright Dairy, the first major dairy producer to announce its 2008 financial results after the contaminated milk scandal erupted last September, recorded full year losses totalled at US$41.9 million.
Bright Dairy, China's third largest dairy producer, said its performance was hampered by large unexpected expenses on management restructuring and sales promotion to counter the effect of the scandal that eroded consumers' confidence in the entire industry.
The country's top two dairy producers, Mengniu and Yili, are scheduled to post their results later this week. In their earnings alerts released earlier, Mengniu forecasted a loss of US$131.7 million for 2008 and Yili said it could incur losses up to US$3.01 million.