August 30, 2019
Mengniu achieves record-high revenue, net profit in first half of 2019
China's Mengniu Dairy Company Limited has announced on August 28 unaudited interim results for the six months ended June 30, 2019.
In the first half of 2019, benefiting from product innovation, proactive brand marketing and strong sales execution, Mengniu's sales volume grew during the period.
The group made revenue of ¥39,857.2 million (US$5.6 billion), an increase of 15.6% year-on-year. Its success in striving for quality growth exceeded market expectation.
Revenue of the liquid milk business increased by 14.4% year-on-year, accounting for 83.1% of the group's total revenue. Profit attributable to owners of Mengniu surged by 33.0% year-on-year to ¥2,076.9 million (US$291 million). Basic earnings per share were ¥0.531 (US$0.07), up by 32.8% year-on-year.
Jeffrey Minfang Lu, CEO of Mengniu, said: "Mengniu has in recent years embarked on a series of reforms and innovative initiatives, building for itself a development engine armed with strengths in production, technology, sales and marketing, branding and teamwork to make the quest for high quality growth (with) "as high as (it) can be" a corporate norm. The management team believes, just as 5G technology will open a new development era for the telecom and manufacturing industries, the high quality development in leaps and bounds Mengniu affords is leading the Chinese dairy industry in advancing towards the high end of the global dairy industry value chain and into the golden times of the transition from "Made in China" to "Created in China."
Lu added: "We are determined to be the decisive force in turning the Chinese dairy industry into a representative of the nation that commands global respect."
The group's major business segments continued to achieve fast growth, with high value-added products helping maintaining its leadership and bolster its advantages.
Mengniu's new business divisions also managed to achieve breakthrough growth.
For instance, its "Milk Deluxe" product made 22% more revenue. Benefiting from a FIFA World Cup marketing campaign and channel penetration effort of the group, Mengniu's "Pure Milk" saw a close to 20% increase in revenue.
As for its chilled product business, Mengniu continued to enjoy market leadership as it expands market share.
Sales of Mengniu's milk formula business continued to grow rapidly with Yashili having 16.2% more sales year-on-year.
For the fresh milk segment, by focusing on two major brands, namely Shiny Meadow and Modern Meadow, Mengniu managed to achieve breakthrough growth in sales revenue and enlarged its market share notably.
In the first half year, Mengniu's fresh milk products were sold in key cities in 16 provinces in the country, basically reaching all key cities in Eastern China.
In addition, R&D and innovation have continued to present Mengniu with important new business growth drivers.
The group also completed deployment of high-end milk sources, giving it control over the highest quality milk sources at home and abroad.
Furthermore, in the first six months of 2019, Mengniu completed the acquisition of Shengmu's downstream organic milk sales operation, while also securing for itself a high-end organic milk source.