Mengniu, one of the Chinese dairies at the centre of the melamine scandal, has booked a jump in first-half profits on the back of soaring sales.
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The company today (19 September) posted a 20.2% rise in net profit for the six months to the end of June. Profit reached CNY485.1m (US$71m) as revenue climbed 36.7% to CNY13.7bn.
Mengniu saw sales rise right across the group with turnover from its UHT milk, milk beverages, yoghurt and ice cream divisions all enjoying strong double-digit growth.
However, the outlook appears less rosy for Mengniu since it was named as one of the companies whose products are contaminated with melamine. Three of the 28 Mengniu samples of baby milk tested were found to contain melamine, as were 11 of 121 samples of liquid milk produced by the company.
Mengniu said it had taken “immediate actions” but said it was impossible at the moment to estimate the financial impact of the scandal on the business.
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By GlobalData
