September 16, 2011

China Modern Dairy Holdings Ltd, a raw milk supplier of China Mengniu Dairy Co Ltd, posted a 322.7% growth in first-half net profit to RMB225 million (US$35 million).

During the reporting period, total sales revenue of milk amounted to RMB1.113 billion (US$174 million), an on-year increase of 88.8% due to the increase in sales volume of raw milk.

Approximately 97.4% of sales revenue of milk came from Mengniu Dairy, while this figure was 97.6% last year.

Duo to the increase in milk production and control over costs, net profit margin of Modern Dairy increased from 18.2% last year to 21.9%, and its operating profit margin grew from 23.3% last year to 27.2%.