Ausnutria has posted a fall in first half profits

Ausnutria has posted a fall in first half profits

A fall in sales at its private label and contract manufacturing divisions has seen Chinese infant formula producer Ausnutria report lower sales and profits for the first six months of the year.

For the period ended 30 June, Ausnutria posted a fall in profit to CNY36.9m (US$57.4m) from CNY58.1m a year earlier. Profit before tax fell to CNY47.9m from CNY70.9m.

Sales decreased to CNY912.3m from CNY936.9m, impacted by a fall in revenue in its private label and contract manufacturing businesses by a combined 63.6% to CNY107.8m, amid a "shift in focus" to its higher profit margin own branded business.

Chairman Yan Weibin said: "We believe that the dairy industry in the PRC, which is the group's principal market, will continue to be challenging in the year ahead. However, the group has formed its strength in the supply chain, consumer service capability and sales network. We are happy to see an increase of sales in the PRC market especially the improvement of our relationship with the clients, and will continue upward integration and product diversification and increase production capacity in the Netherland, to build a leading position in the world for goat milk-based paediatric formula."

Ausnutria Dairy has its production facilities principally based in China and the Netherlands. It processes, markets and sells dairy products to China, Europe, North America, Middle East, Russia and CIS and other overseas countries.