China Mengniu Dairy Company (2319) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB41,567.2 million, down 6.9% year-over-year due to persistent raw milk oversupply and weak consumer demand recovery.

• Gross profit margin rose 1.4–1.5 percentage points to 41.7%, driven by lower raw milk prices.

• Operating profit increased 13.4% to RMB3,538.3 million, with margin up to 8.5%.

• Net profit attributable to owners fell 16.4% to RMB2,045.5 million, mainly due to higher losses from associates and absence of prior year disposal gains.

• Over 100 new products launched, with growth in chilled yogurt, fresh milk, milk formula, cheese, and ice products.

Financial highlights

• EBITDA decreased 4.1% to RMB4,596.7 million, but EBITDA margin improved to 11.1%.

• Net cash inflow from operating activities rose 46.2% to RMB2,806.1 million.

• Capital expenditure dropped 40.3% to RMB1,010.4 million.

• Sales and distribution expense ratio decreased to 27.9%.

• Debt-to-equity ratio improved to 61.8% from 72.1% at year-end 2024.

Outlook and guidance

• Industry supply-demand imbalances expected to improve as raw milk prices stabilize and consumer confidence recovers.

• Focus remains on R&D, product innovation, and expanding user scenarios, with continued international expansion.

• Ongoing investment in technology, digital transformation, and sustainability initiatives.