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Fresh Produce

Dairy Giant Mengniu Sees Revenue Up 6.5% In 2023

By Steve Wynne-Jones
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Dairy Giant Mengniu Sees Revenue Up 6.5% In 2023

Chinese dairy giant Mengniu has reported annual revenue of RMB98.62 billion (€12.71 billion) in its 2023 financial year, representing year-on-year growth of 6.5%.

Operating profit reached RMB6.17 billion (€790 million) for the period, an increase of 13.8% from the previous year, with the company noting a 'continuous year-on-year improvement in operating profit margin', of 40 basis points, to 6.3%.

The group said that during 2023, it 'demonstrated steadfast confidence in its business development, profitability, and future prospects', while also engaging in a share buyback scheme and raising its dividend payout ratio for shareholders.

Throughout 2023, domestic dairy consumption exhibited a modest recovery, with the growth rate of dairy product consumption experiencing a temporary slowdown due to the reorganisation of online and offline sales channels, leading to heightened competition, the company stated.

Additionally, it highlighted that Chinese consumers' awareness of nutrition and health has continued to increase since the pandemic, indicating robust resilience in demand for dairy products.

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Core Business

'In the face of external challenges, Mengniu maintained its commitment to a strategy focused on high-quality growth, actively strengthening its core business, optimising its business structure, and refining its operational management,' Mengniu said in a statement.

'These actions have led to steady revenue growth and a consistent improvement in operating profit margins.'

Product Development

The group's Milk Deluxe brand experienced a robust year, supported by product innovation and the enhancement of brand value. Similarly, its Just Yoghurt brand introduced a new packaging format and invested in brand differentiation, while Mengniu also invested in a high-end yoghurt brand called YO! Fine Diary.

Additionally, the company launched a flagship lactose-free milk product under its parent brand, catering to specific consumer needs, known as Yoyi C.

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