Mengniu Dairy Gained 1.2b Profit

Mengniu Dairy released its annual report of 2010 on March 31, showing that its revenue is 30.265 billion RMB, its net profit 1.237 billion RMB, earnings per share 0.712 yuan and final dividend is 0.16 yuan.

The report showed that the sales of liquid milk rose by 18.2% from 22.736 billion RMB in 2009 to 26.8718 billion RMB this year, accounting for 88% of the company s total revenue and making it the biggest source of income. While proportion of liquid milk sales are rising in the total revenue, those of other categories of products, such as ice cream and milk powder, experience slight decreases, which are less than 1%.

In the report, gross profit rose by 13.6% to 7.7864 billion RMB thanks to its improved product mix, increased sales of high-end products, accurate control over its costs, all of which, as Mengniu noted, have offset the rising cost of raw materials, such as raw milk, and kept its gross margin at 25.7% for the whole year.