Mengniu’s milk powder business ‘gains and losses’

2022-08-06 0 By

On the evening of March 30, Mengniu, one of the two giants in the dairy industry, disclosed its operating conditions for 2021.Mengniu’s revenue was 88.141.5 billion yuan, up 15.9 percent year on year, the data showed.Profit attributable to owners of the Company increased by 42.6% year-on-year to $5,0255 million due to higher revenue and improved operating efficiency.On March 31, mengniu results show in the meeting, President of mengniu Lu Min put said 2021 revenue growth was the fastest growth year since 5 years mengniu, beyond the growth expectations to the market earlier this year, income also included in some advances in mergers and acquisitions, including ice cream brand escher, escher contributed more than an income of 1 billion yuan.”Mengniu achieved organic growth of 13.9% and also achieved its revenue growth target for the full year, mainly due to volume growth and some structural growth.”Lu Minfang points out.Specifically, Mengniu liquid milk business revenue of 76.5 billion yuan, up 12.9% year on year;Ice cream business 4.2 billion yuan, up 61% year on year;Other revenue, mainly from the cheese business, grew 126.3% year on year.Lu minfang said that in terms of category, the large single product telonsol of liquid milk will grow by 33% in 2021 to exceed 30 billion yuan.Thanks to consumers’ demand for dairy products, nutrition and health after the epidemic, the net income of fresh milk will increase by more than 85% in 2021. Currently, the layout of mengniu’s 7 fresh milk factories has been basically completed, which can support the daily fresh milk to reach 10 billion yuan.Another relatively young business – cheese, in Lu Minfang’s opinion, will soon become mengniu’s 10 billion plate.It is understood that mengniu cheese plate is currently divided into two parts, one is Mengniu brand cheese business, involving food and beverage channel cheese brand, the other part is Miaoke Lando.In 2021, Mengniu completes the strategic investment and issuance of Miaoke Lando, and Mengniu has become the actual controller of Miaoke Lando, and Miaoke Lando has become the cheese operating platform of Mengniu.The next focus is to strengthen the governance level of miaoke Lando’s listed companies while rapidly developing its cheese business, enabling miaoke Lando to improve its comprehensive management, quality control, operational efficiency and other aspects so as to achieve long-term sustainable development.Emerging businesses continue to develop and gradually grow into the future pillar of Mengniu, but the old business milk powder is slightly dim.Data showed that the milk powder business generated revenue of 4.9 billion yuan, up 8.2% year on year, mainly including revenue from Yashili and Bellamy’s businesses.Lu minfang said milk powder business growth mainly contributed to the rapid growth of adult milk powder.It is reported that Yashili will achieve revenue of 4.4 billion yuan in 2021. Based on the rough calculation of this figure, Bellamy’s revenue in 2021 will be around 500 million yuan, significantly reduced from 1 billion yuan in 2020.Not only that, Yashili company equity holders should account for profit – 81.4 million yuan, a year-on-year decline of 180.5%.Excluding the impact of the one-time impairment of THE Dumex trademark of 200 million yuan, the profit attributable to the equity holders of the company is 119 million yuan.Lu Minfang admitted that there were gains and losses in the business of milk powder, and the adult powder, children’s powder and organic milk powder made achievements, especially in the field of adult powder.Infant formula ruiboen growth is relatively stable.Due to the epidemic, daigou and cross-border e-commerce were greatly affected, so Bellamy was affected by the epidemic. There was a slight decline in 2021, but now adjustments have been made. In the future, with the improvement of the epidemic, Bellamy will be able to gain market share in organic products.Mengniu also began to reform the milk powder sector.Recently, Mengniu, Yashili issued a notice, Mengniu and Yashili exist potential transactions, including possible privatization.”Mengniu has developed rapidly in adult milk powder and children’s milk powder, but from the perspective of the whole milk powder business, mengniu currently lacks in the integration of Yashili and Bellamy.”Dairy industry practitioners pointed out that milk powder business is mengniu’s strategic importance, so it may be a great effort to integrate.Yashili’s current financing capacity is weak, so yashili if delisted, but flexible operation.After yashili delisted, it could also be integrated with Bellamy, not ruling out the possibility of a relisting package.