Yili posts continued growth in half-year results
Results for the first half of 2019 show Yili’s global operating revenue grew year-on-year by RMB 5.13bn (US$694m) to a total annual revenue of RMB 45.07bn (US$6.3bn).
Net profit of RMB 3.8bn (US$505m) was a year-on-year increase of RMB 0.33bn (US$45m).
The announcement closely follows Yili’s successfully acquisition of Westland Co-Operative Dairy Company Limited, the second largest dairy enterprise in New Zealand.
Yili Group CEO Jianqiu Zhang described the acquisition as a significant breakthrough in Yili’s global expansion, creating a ‘Dairy Silk Road’ between Asia and New Zealand.
“The acquisition of Westland helps us realize our vision of being the most trusted health food brand in the world by building a vast dairy bridge crossing the Pacific Ocean, helping the world to share health,’’ Zhang said.
Earlier this year, Yili launched its vision of creating a “global health ecosystem” as part of its drive to deepen its global footprint with the aim of integrating the best resources globally to better meet consumers’ health and nutritional needs.
Yili has continued to grow its footprint in Southeast Asia and Asia, offering more products to consumers in Thailand, Indonesia, Singapore and Myanmar.
The acquisition of Thailand’s largest local ice cream company, Chomthana, was a major breakthrough for Yili in terms of growing regional production capacity and gaining market access. Within one month of the post-deal integration process, Chomthana’s production capacity increased by more than 30%.
Prior to the acquisition of Westland, Yili previously invested a total of $NZ660m (US$416m) in creating the Oceania Dairy production facility, one of the world’s largest integrated dairy bases.
Yili also signed a strategic partnership agreement with Lincoln University to establish its Oceania Research and Development Center.
“We are confident our investment here will continue to create better opportunities not only for our employees, the dairy farmers of New Zealand and the Westland community, but for the global dairy industry and New Zealand as well,’’ Zhang said.