Chinese Dairy Giant Mengniu Leaps After 27% Jump in First-Half Profit
Xu Wei
DATE:  Aug 25 2022
/ SOURCE:  Yicai
Chinese Dairy Giant Mengniu Leaps After 27% Jump in First-Half Profit Chinese Dairy Giant Mengniu Leaps After 27% Jump in First-Half Profit

(Yicai Global) Aug. 25 -- China Mengniu Dairy’s stock price jumped after the major dairy producer recorded a 27 percent increase in first-half profit from a year ago because the company booked a gain from selling a subsidiary and the fair value of its financial liabilities rose.

Mengniu [HKG: 2319] closed 9.2 percent up in Hong Kong today at HKD35.15 (USD4.48) a share, giving it a market value of HKD139.4 billion (USD17.8 billion).

Net profit was CNY3.8 billion (USD555 million) in the six months ended June 30, versus CNY3 billion a year earlier, the Hohhot-based company said in a financial report published yesterday. Revenue rose 4 percent to CNY47.7 billion (USD7 billion).

The fair value of Mengniu's financial liabilities rose by CNY773 million (USD113 million), and the disposal of a subsidiary brought CNY241 million, the firm noted.

Income from sales of liquid milk edged up 0.5 percent to CNY39.7 billion, while that from ice cream jumped 30 percent to CNY3.9 billion, despite the impact of Covid-19 outbreaks.

“Mengniu’s fresh milk business continued to lead the market,” the company said. “Its high-end brand, Shiny Meadow, and Modern Meadow fresh milk products achieved rapid growth far above the market level.”

Mengniu also said it speeded up development of its online-to-offline delivery business and other online channels. Its home delivery segment grew over 35 percent, with an e-commerce market share of 28 percent. The firm led in the online market for room temperature liquid milk.

Mengniu's global dairy ranking improved to seventh, being the youngest among the top 10 companies, the firm added. In the 2022 Kantar BrandZ ranking of the most valuable global brands, Mengniu's brand value rose 15% on the year, placing it first in China's dairy industry, it noted.

Editor: Futura Costaglione

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Keywords:   Financial Statements,China Mengniu Dairy