Indefinitely devastated Mengniu said negative reports caused sales to decline by nearly 30%

Mengniu Dairy, which was plunged into public opinion due to falsification of production dates, announced its first-half performance report yesterday. According to the report, as the decline in revenue dragged down the gross profit and expenses, the company’s net profit attributable to shareholders during the period was 645 million yuan, down 18.4% year-on-year; basic earnings per share were 0.365 yuan, down 19.6% year-on-year.

Negative reports affected the sales report. In the first half of the year, Mengniu achieved an operating income of 18.36 billion yuan, a year-on-year decrease of 1.17%.

Mengniu said that during the period, the growth of China's dairy industry slowed down, and at the end of 2011, it was reported by aflatoxin M1 and other negative media that once caused market sales to drop by nearly 30%. Although the company stepped up sales efforts to gradually restore market share, it did not reverse the downward trend in sales. During the reporting period, sales performance declined.

“However, the Group has regained its market share by increasing its promotional efforts. At the same time, it has maintained its sales volume through brand restoration and increasing revenue from high-end products,” said Mengniu.

The reporter noticed that in the first half of the year, the gross profit of Mengniu Dairy also decreased along with the decline in sales. The overall gross profit margin of Mengniu in the first half of the year was 25.7%, a slight drop of 0.3%.

In the first half of the year, sales of liquid milk products fell by 2.17 percent to 15.941 billion yuan, and sales of ice cream and other dairy products increased.

Said that it will seriously sum up the deficiencies and lessons in the face of the second half of the situation, this year's newly appointed president of the Mengniu Sun Yiping said yesterday in the results of the press conference, will increase the production of high gross profit margin products, and have the confidence to recover, the overall meeting improvement, the company will launch New product.

As for profit performance, Sun Yiping said that management is confident in the second half of the year, but it still does not rule out the cost of raw milk is still rising.

Sun Yiping said that the company will cooperate with other companies in addition to building farms.

Mengniu Dairy said in its mid-year report that it will seriously summarize the shortcomings and lessons, aim at the overall monitoring of the dairy industry chain, continuously improve the internal management system, and enhance various business capabilities. Mengniu will also strengthen communication and exchange among consumers, investors, industry professionals and the media, increase transparency, and enhance Mengniu's image.

â– Relevant news Yili and Bright Profits fell by one liter In addition to Mengniu, Yili and Guangming have recently announced their first-half results (performance reports). In the first half of the year, Yili Group achieved revenue of 21.183 billion yuan, up 11.8% year-on-year, and net profit attributable to parent company was 762 million yuan, down 6.67% year-on-year.

The drop in Yili's net profit was mainly due to the decline in profit margin for liquid milk, which accounted for the highest percentage of revenue. In addition, milk powder and milk products with the highest profit margins were affected by negative factors, with the largest year-on-year decline in revenue, reaching 16.26%.

Yili said that consumers' lack of confidence in domestic dairy products, the expansion of dairy imports, the intensification of domestic dairy industry competition, the rising cost of feed, and the continued rise in the price of raw milk are the three biggest factors facing the company's current difficulties.

The bright news release shows that in the first half of the year, it achieved revenue of 6.46 billion yuan, an increase of 16.49% year-on-year, and a net profit of 97 million yuan, a year-on-year increase of 31.89%.