This evening, Mengniu Dairy, the second largest dairy enterprise in China, presented its mid-2022 report card.
In the first six months of this year, Mengniu’s revenue was 47.722.3 billion yuan, an increase of 27.3% year-on-year to 3751.4 million yuan. This group of figures is better than some analysts’ expectations.
This is the first interim report submitted by Mengniu after the adjustment of the six members of the board of directors in December last year. In the reorganization of the board of directors, Niu Gensheng formally resigned as a non-executive director and a member of the strategy and Development Committee of Mengniu. In addition, in the first half of this year, Danone, a French food giant, officially announced that it would dissolve some of the last relationships with Mengniu to reduce its leverage ratio: the foreign side would buy back Domex, withdraw from Yashili and the yogurt joint venture of both sides.
Let’s first look at the specific contents of Mengniu Zhongbao.
Mengniu said today that due to the increase in the average price of raw and auxiliary materials during the period, and the increase in depreciation expenses arising from the increase in plant and production equipment, the gross profit
Compared with the same period last year, the rate decreased by 1.6 percentage points to 36.6%.
In fact, with the growth of domestic normal temperature dairy products no longer running wild, dairy giants are opening up more new battlefields. In the first half of this year, Mengniu further invested in low-temperature fresh milk, cheese, milk powder, ice cream and other businesses, hoping to achieve differentiated competition with its main competitors and promote its goal of “creating a new Mengniu” within five years.
It is worth noting that milk source is an important link in the layout of high-end dairy products. Today, a senior manager of modern animal husbandry, which is controlled by Mengniu, said that the growth of low-temperature fresh milk and high-end low-temperature yogurt has been very rapid in recent years. If the company establishes upstream and downstream connections, it can enable Chinese dairy enterprises to use their raw milk more.
In addition, although the ultrafiltration milk brand fairlife jointly built by Mengniu and Coca Cola is still in the early stage, Mengniu’s own high-end low-temperature fresh milk brand daily fresh language has achieved rapid growth. Today’s Zhongbao pointed out that daily Xianyu was launched in June this year as a sub brand of xiaoxianyu for young people, with better light fresh milk as its differentiated selling point. In addition, Mengniu expressed that it would put 780ml fresh milk of Mengniu on the market.
In terms of ice cream, the cross-border cooperation between Mengniu and Maotai is the most memorable thing in the period. This makes the high-end brand “Tilan Shengxue” under Mengniu receive more attention from the outside world. In the above middle report, Mengniu pointed out that the ice cream business income was 3.039 billion yuan, accounting for 8.2% of Mengniu’s total income (the same period last year)
In terms of milk powder, in the first half of this year, one of Mengniu’s biggest actions was to promote the privatization of Yashili, hoping to achieve deep collaboration among its many milk powder. According to the mid-term report, the milk powder business income of Mengniu in the first half of the year was 2.547 billion yuan, accounting for 4.0% of the total income of Mengniu (the milk powder business income in the same period of last year mainly included the income from the business of Yashili and Bellamy).
According to the interim results announced by Yashili today, its revenue was 1.886.7 billion yuan (2.156.9 billion yuan in the same period last year), a year-on-year decrease of 12.5%. Yashili pointed out that during the period, the income of adult milk powder and infant milk powder was affected by the epidemic and the external market competition was fierce
Today, when talking about the outlook, Mengniu pointed out that under the strong start of the five-year strategy of “creating a new Mengniu”, the company will comprehensively promote the established strategy this year, and strive to become a more responsible, strong cultural gene and digital first cow “.
In addition, in view of the aging trend of the population, Mengniu said that it would strengthen the product mix of milk powder for the middle-aged and the elderly. At the same time, the diversification of cheese categories in dairy product consumption upgrading, low penetration of cheese consumption, and family baking will accelerate the innovation of food and snack cheese products to grasp the cheese market
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Just now, Mengniu, after saying goodbye to Niu Gensheng, handed over its first mid-term report card