Chinese milk powder firm Yashili warns of 40 pct profit fall

Yashili International Holdings

14/01/2015 24:30

HONG KONG, Jan 14 (Reuters) - Chinese milk powder maker 
Yashili International Holdings Ltd  1230.HK  said on Wednesday 
it expects its profit for the year ended in December to fall 
about 40 percent, hurt by a slowdown in the paediatric milk 
powder industry. 
    Yashili, which is majority owned by China Mengniu Dairy Co 
Ltd  2319.HK , said refinement of its distribution channels in 
2014, intense market competition and the lack of new product 
launches had also hit its performance. 
    "Due to the weak performance of 2014, the board believes 
that there are still challenges for the overall operation and 
financial position of the group," chairman Sun Yiping said in a 
filing to the Hong Kong bourse. 
    Yashili is due to announce its yearly results in March. It 
posted a 437.6 million yuan profit for 2013, down 6.6 percent 
from the previous year.  
    Last October, French dairy giant Danone SA  DANO.PA  agreed 
to buy a 25 percent stake in Yashili for $550 million as it 
looked to increase its footprint in China's fast-growing dairy 
sector.  ID:nL4N0SQ06C  
 
 (Reporting by Donny Kwok; Editing by Stephen Coates) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: YASHILI OUTLOOK/