CHINA: Mengniu upbeat on growth prospects as earnings rise
Mengniu upbeat as earnings climb
Chinese dairy major China Mengniu Dairy Co. said today (26 March) expects to capitalise on the growth opportunities presented by the consolidation of an expanding domestic sector.
Mengniu, which booked an increase in 2013 sales and earnings this morning (26 March), said it is positioned to benefit from "immense opportunities" in Chinese dairy.
"The Chinese government has initiated policies to facilitate industry consolidation, set higher entry barriers, investigate monopolistic practices on imported milk formula products and relax the one-child policy. These policies support the long-term healthy development of the industry and create immense opportunities for leading enterprises such as Mengniu."
Over the course of 2013, Mengniu said it completed a number of strategic initiatives to bolster its position in the sector. The group acquired local infant formula group Yashili International Holdings, established a chilled products joint venture with France's Danone and increased its control of dairy farming businesses China Modern Dairy Holdings and YuanShengTai Dairy Farm.
The company also "actively adjusted" its product portfolio and put more resources behind "key brands".
During the year, Mengniu said revenue rose to CNY43.36bn, up 20.4%. Profit attributable to owners of the company increased 25.2%, rising to CNY1.63bn in the 12-month period.
Click here to view the full results announcement.
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