China Mengniu returns to black in 2017, lags forecasts

Yashili International Holdings

28/03/2018 01:05

HONG KONG, March 28 Reuters) - China Mengniu Dairy Co Ltd
 2319.HK  said it returned to profit in 2017, helped by low raw
milk prices, tighter control over costs and expenses, and solid
sales growth for its milk and yogurt products.
    China's biggest manufacturer said late on Tuesday annual net
profit came in at 2.05 billion yuan ($326.5 million), compared
with a loss of 751 million yuan in the prior year when its unit
Yashili International Holdings  1230.HK  booked a heavy
impairment loss on its goodwill. 
    The result missed a Thomson Reuters StarMine Smart Estimate
of 2.3 billion yuan drawn from 26 analysts. Smart Estimates give
greater weighting to more accurate analysts.
    Revenue rose 11.9 percent to 60.16 billion yuan. Gross
profit margin increased 2.4 percentage points from a year ago to
35.2 percent amid relatively low raw milk prices and an
improving product mix. 
    Mengniu is stepping up development and sales of premium
products that are gaining favour with Chinese consumers and is
working with partners like Danone Group  DANO.PA  and Arla Foods
to bring more dairy goods to China.
    
($1 = 6.2781 Chinese yuan renminbi)

 (Reporting by Donny Kwok; Editing by Edwina Gibbs and Stephen
Coates)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters
Messaging: donny.kwok.reuters.com@reuters.net))