Yili achieves double-digit revenue and profit growth in the first half of FY2022
HUHHOT, China, September 1, 2022 /PRNewswire/ — Total revenue and net profit of Yili Group (600887.SS) hit new highs of 63.463 billion RMB ($9.2 billion) and 6.139 billion RMB ($0.89 billion), up 12.31% and 15.40% year-on-year, respectively, according to its FY2022 H1 report released on August 30, 2022.
During the reporting period, the company’s total turnover exceeded the second level by more than 15 billion RMB ($2.17 billion), widening the gap to 33% against 25% the previous year.
Yili’s milk powder and dairy products business achieved a growth rate of 58.28%, which was the fastest in the dairy industry. Its infant formula achieved the fastest growth and adult milk powder remained the leader in its segment; the cheese category also grew by leaps and bounds, with growth of more than 40%; the liquid milk business took the largest market share with growing strength; With a growth of 31.71%, the ice cream sector leads the industry and has held the largest market share for 28 consecutive years.
Core business is gaining momentum and new growth drivers are showing faster momentum
During the reporting period, Yili’s liquid milk business achieved total sales of 42.892 billion RMB ($6.218 billion), the industry leader in terms of scale and market share. AMBPOMIAL retains first place in its category with a market share of 65%. As the leading organic milk brand, Satine continued to hold the largest market share in the industry.
Yili’s ice cream business continued to grow with a wider margin over the same period, outpacing the industry with 31.71% year-on-year sales growth.
As Yili’s second growth curve, the milk powder, cheese and other dairy business continued to grow at a pace that far exceeded its peers, achieving revenue of 12.071 billion RMB ($1.75 billion) in the first half of fiscal year 2022.
Innovation is accelerating and new product growth is exceeding expectations
Yili accelerated its pace of new product deployment and full life cycle coverage, with new product revenue accounting for 12.48%.
Satine ultra-filtered milk, Cute Star A2β pure casein milk, Jinlingguan Seine Moisten A2 OPO organic Infant formulas and other new products were launched.
Yili also continued to focus on organic milk, milk-based nutrients, cheese snacks, natural mineral water and other businesses that have strong growth potential. These categories are growing more than 20% year-over-year, among which sales of the Inikin Yike Living Fountain more than doubled in the first half of this year.
Consumer Confidence Drives Growth Despite Challenges
To better serve consumers, Yili remains committed to its core capabilities such as product quality, channels and resources.
Yili has extended its reach to new channels by seizing new growth opportunities in maternal and child health, catering, e-commerce, community group purchasing and other special channels.
Despite COVID-19 and the impact of inflation, Yili ensured timely delivery of products by optimizing global supply chain networks. With its global operating platform, Yili has enabled efficient coordination between its bases in ChinaSoutheast Asian countries and New Zealandwhose overseas revenues are up 58% year-on-year.
Commenting on Yili’s future development, Pan Gang, Chairman and Chairman of Yili Group, said, “Despite the challenges in the external environment, we remain confident and capable of improving our core competencies after exceeding the annual income of more than of 100 billion RMB ($14.49 billion), in order to unlock the potential for value creation and future development. At the same time, we will share our values with consumers, employees, stakeholders across the industry chain and society as a whole under the guidance of our new vision for value creation.”
($1 ≈ RMB6.90)
SOURCE Yili Group