In 2017 Yili achieved
increased sales and net profit due to the strong growth in its major products.
On
April 24, China’s dairy giant Yili published its 2017 financial report,
attributing its strong results to good performances in liquid dairy, formula
and ice cream. According to the report, the sales went up by 12.3% YoY and net
profit grew by 5.9% YoY.
The
positive financial result is mainly due to the success of its three major dairy
segments. Hereby, liquid dairy went up 12.6%, infant and adult formula up
17.8%, and ice cream business saw a growth of 9.8%.
According
to market intelligence firm CCM, Yili is far ahead of its peers in the liquid
dairy sector, and its infant formula sales also surpassed those of other
domestic infant formula producers and keep rising. The company gave a special
mention to its 38.9% rise in infant formula sales via mother & baby stores.
It
is worth noticing, that Yili is not the only dairy enterprise in China with
impressive performance recently. China’s listed dairy companies issued their
2017 financial reports successively in March and April. Besides Yili, other
market players like Mengniu and Bright Dairy achieved significant net profit
growth, whilst the upstream operators Modern Dairy, Shengmu, and Xinjiang
Western Animal Husbandry all ran at serious losses.
About the company
Inner
Mongolia Yili Industrial Group has risen up to the world's largest dairy
companies. The company has become the largest dairy enterprise in China, and
one of the leaders in Asia. The development shows that China’s once mistrusted
dairy industry is constantly developing and gets recognized in worldwide
markets.
Yili
is a provider of dairy products in China's. In 2015, Yili reported a
double-digit growth in its operating turnover and net profit. So far, Yilihas
opened its first major overseas dairy factory in New Zealand, entered into strategic
partnership with Italian dairy company Sterilgarda AlimentiS.p.A., set up the
European R&D Center in the Netherlands, the first overseas R&D center
of Chinese dairy sector, and carried out comprehensive cooperation with
enterprises, universities and research institutes in the United States in
multiple fields.
Yili
produces and sells dairy products in China and internationally. The company
offers liquid milk, milk powder, yoghourt, and ice cream, as well as milk
tablets, soybean milk powder, and milk tea powder. The company was founded in
1956 and is based in Hohhot, China.
On
April 12, Yili announced it will market its first energy drink Huanxingyuan,
targeting 18– 35-year-old consumers. The product will be sold in the
Meiyijia and Hongqi chain stores first.
Huanxingyuan
is priced at USD0.96 per 250 ml can, the same as RedBull. Currently,
RedBull, Eastroc Super Drink and Hi-Tiger are the top 3 energy drinks
in China; RedBull accounts for 70%+ of the market, with annual sales
stabilising at over USD3.2 billion for the past 3 years.
About the article
CCM
is China’s leading market intelligence provider for the fields of chemicals,
agriculture, food and feed.
Get
regular and exclusive updates in China’s dairy market by subscribing to CCM’s
monthly published China Dairy News.