Fast-growing infant formula and milk powder segments drive Yili’s interim results
Yili Group has recorded a revenue growth of 12.31% on H1 2021, with milk powder and dairy products achieving 58.28% revenue growth year on year, followed by cheese (40%) and ice cream (31.7%). Total revenue for H1 2022 was RBM 62,465bn (US$9,000bn), with the company 'confident' to surpass RBM 100bn in its annual results.
Yili's impressive performance in the milk powder and infant formula segments come on the back of significant investment in infrastructure, including the opening of a milk powder plant that can produce 60,000 tons of product per year. The company also took a stake in goat milk formula firm Ausnutria Dairy Co. Ltd last year, which has contributed to pushing Yili's infant powder market share up by 3.5%.
The firm's focus in organic dairy, dairy nutrition, cheese snacks and natural mineral water has also paid off with a revenue increase of 20% in these categories. New products - including Satine Ultra-filtered Milk, Cute Star A2β-casein Pure Milk and Jinlingguan Seine Mouiller A2 OPO Organic Infant Formula - managed a 12.48% growth.
Liquid milk, a core category for the business, maintained a 65% market share and grew by 1.1% on 2021.
Overseas revenue also increased by 58% year-on-year, with Yili stating that this was achieved through supply chain optimizations and ‘efficient coordination’ between its operations in China, New Zealand and Southeast Asia.
Looking ahead, the company noted that rising costs of raw materials and 'external environment' factors were key growth barriers but highlighted that new retail was 'developing rapidly' and that the consumer demand for dairy products was on the increase.
Pan Gang, chairman and president of Yili Group, said in a statement: “Despite the challenges in the external environment, we remain confident and capable of improving our core competencies after surpassing the annual income of over RMB 100bn (US$14.49bn), so that we may unleash the potential for value creation and future development. At the same time, we will share our values with consumers, employees, players across the whole industrial chain and all of society under the guidance of our New Vision for Value Creation.”