Dairy firm China Mengniu's 2018 profit jumps 49 percent on stronger sales

HONG KONG (Reuters) - China Mengniu Dairy Co Ltd's 2018 net profit jumped 49 percent, boosted by stronger sales on an improved product mix and stable raw milk prices. Net profit for January to December came in at a record 3.04 billion yuan ($452 million), up from a profit of 2.05 billion yuan in the previous year, the country's top milk products manufacturer said in a statement late on Wednesday

Reuters March 28, 2019 07:05:53 IST
Dairy firm China Mengniu's 2018 profit jumps 49 percent on stronger sales

Dairy firm China Mengnius 2018 profit jumps 49 percent on stronger sales

HONG KONG (Reuters) - China Mengniu Dairy Co Ltd's 2018 net profit jumped 49 percent, boosted by stronger sales on an improved product mix and stable raw milk prices.

Net profit for January to December came in at a record 3.04 billion yuan ($452 million), up from a profit of 2.05 billion yuan in the previous year, the country's top milk products manufacturer said in a statement late on Wednesday.

That compared with an average forecast of 3.01 billion yuan by 24 analysts, according to estimates compiled by Refinitiv.

Revenue rose 14.7 percent to a record 68.98 billion yuan from 60.16 billion yuan a year ago. That compared with an average forecast of 68.9 billion yuan for 2018. Gross profit margin rose 2.2 percentage points from a year ago to 37.4 percent.

"In 2019, it is expected that cost of raw milk will remain steady with mild increase and the industry will continue to see structural upgrade," Chief Executive Officer Jeffrey Lu said in the statement.

"Dairy product consumption in the market is going to enter a period of rapid growth and the dairy industry will move into a positive development cycle," Lu added.

Mengniu is stepping up development and sales of premium products and is working with major shareholders and partners like Danone Group and Arla Foods to bring more dairy goods to China, and teams up with Alibaba to increase the global reach of Chinese dairy products.

Shares of Mengniu have gained 8.6 percent so far this year, lagging a 11.2 percent rise in the benchmark Hang Seng Index.

(Reporting by Donny Kwok; Editing by Rashmi Aich)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.