Net hits 485.1m yuan as firm focuses on high-end products
China Mengniu Dairy, the mainland's largest milk producer, boosted first-half profit 41.3 per cent and increased its share of the mainland liquid milk market as it sought higher growth from high-end products.
Net profit rose to 485.1 million yuan from 343.3 million yuan a year earlier as revenues increased 32.8 per cent to 10.02 billion yuan from 7.55 billion yuan last year.
Liquid milk continued to be the company's main driver, contributing 8.8 billion yuan in revenue, or a 36.9 per cent increase from a year earlier and accounting for 87.8 per cent of total revenue.
According to a survey by ACNielsen in June, Mengniu raised its share of the mainland liquid milk market to 35.1 per cent in terms of sales volume from 31.7 per cent a year earlier.
'Mengniu's market share will grow higher, but at a slower pace,' said Yao Tongshan, the company's chief financial officer. 'The major driver for market share in the future will be the introduction of new products.'
The top three liquid milk manufacturers, Mengniu, Inner Mongolia Yili Industrial Group and Bright Dairy and Food, together accounted for 65.3 per cent of the market at the end of June, up from 62.4 per cent a year earlier, data from ACNielsen showed.
