Yili sees double-digit revenue growth in H1 FY2021

By Jim Cornall contact

- Last updated on GMT

The company saw double-digit growth in revenue and net profit. Pic: Yili
The company saw double-digit growth in revenue and net profit. Pic: Yili

Related tags: Yili

On August 30, Chinese dairy giant Yili published its FY2021 H1 financial report.

The company saw double-digit growth in revenue and net profit, with gross revenue rising 18.89% YoY to reach RMB 56.506bn ($8.75bn), and net profit attributable to the parent company jumping 42.48% YoY to reach RMB 5.322bn ($830m).

During the reporting period, Yili’s main products continued to exhibit strong growth. Total sales revenue for Satine, AMBPOMIAL, Changqing, Jinlingguan, and Chocliz increased by 20.7% YoY. In particular, the AMBPOMIAL AMX Zero Sugar yogurt and AMBPOMIAL 5G-Protein yogurt series, launched in the second half of 2020, saw rapid growth, the company said.

Sales revenue of new product categories represented by Satine A2β-casein Organic Pure Milk, ​Yili Zhennong High-calcium Milk, Changqing Tea & Fruit Yogurt, and Cute Star Child Growth Goat Milk accounted for 15.6% of Yili’s total revenue.

During the reporting period, retail sales of cheese products more than doubled year over year, giving the company a head start in the segment with high growth potential. The company’s low-temperature milk business also grew with a 5.7% increase in market share.

Yili also pointed to its Jinlingguan series of high-end infant formula, developed with support from 19 years of breast milk research and milk sources such as organic and A2 milk. Nielsen retail data showed retail sales of infant formulas increased by 35.2% YoY, and the growth rate of Jinlingguan Zhenhu reached 37% to become the fastest-growing brand in its segment.

In the non-dairy category, Yili’s Inikin Yike mineral water also made a breakthrough in sales growth and has mainly been distributed in big cities through e-commerce, O2O home delivery, and other channels. Manufacturing plants for the product are now operating at full capacity.

The ongoing impact of Covid-19 has affected consumption behaviors and scenarios. Of note, there has been an accelerated growth in the contributions of new retail and e-commerce to the total retail sales of consumer goods.

While leveraging existing advantages in its distribution channels, Yili also embraced digital channels in response to the latest market trends. Yili’s e-commerce business grew 21.8% YoY in the first half of 2021, contributing to the high market penetration rate of 85.7% for its UHT milk.

In addition, Yili also leveraged synergy within its “global supply chain network” to ensure the efficient operation of its supply, production, and marketing systems. As of June 2021, the company’s total production capacity neared 13.94m tons per year.

In August this year, Rabobank released its annual Global Dairy Top 20 list, in which Yili Group was again listed among the top five global dairy companies. Yili was also ranked as the leading company in Asia for eight consecutive years.

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