Mengniu Dairy H1 Profits Slide As Revenues Curdle

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China Mengniu Dairy saw its profits autumn successful nan first half of nan twelvemonth arsenic income were hit, successful part, by “lower-than-expected” demand.

The Hong Kong-listed patient posted a 6.9% autumn successful revenues to 41.57bn yuan, which contributed to a 16.2% driblet successful profits to 2.05bn yuan.

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Mengniu’s first-half capacity follows a diminution successful income and net successful 2024.

Reflecting connected nan opening six months of 2025, nan institution said a “persistent oversupply of earthy milk” and a lower-than-expected” betterment successful user request betterment meant an “imbalance” betwixt proviso and request successful China’s dairy manufacture continued.

However, Mengniu insisted nan assemblage “still holds immense semipermanent imaginable and structural improvement opportunities”.

It pointed to caller authorities measures to boost home request and to support parents’ childcare costs.

Mengniu said it had invested successful invention and distribution. The institution is looking to boost its beingness successful “lower-tier markets” and successful “high-growth channels” including convenience and e-commerce.

During nan first half of nan year, Mengniu’s milk-formula section reported a 2.5% summation successful gross to 1.68bn yuan.

However, nan business only accounts for astir 4% of Mengniu’s turnover. The company’s largest section is liquid beverage and, amid unit connected ambient sales, that broadside of nan business saw its income diminution 11.2% successful nan first half of nan twelvemonth to 32.19bn yuan.