Yili Group (600887) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB 115.39 billion, down 8.24% year-over-year; net profit attributable to shareholders was RMB 8.45 billion, down 18.94% year-over-year.

• Operating cash flow increased 18.86% to RMB 21.74 billion, driven by increased prepayments from distributors.

• The company maintained leading market shares in liquid milk, infant formula, adult milk powder, cheese, and ice cream segments.

• Proposed cash dividend of RMB 1.22 per share, totaling RMB 7.73 billion, representing 91.4% of net profit.

Financial highlights

• Gross margin improved to 34.03%, up 1.31 percentage points year-over-year.

• Net profit margin declined due to lower sales and increased impairment losses, especially on goodwill.

• Non-recurring gains (mainly asset disposals) contributed RMB 2.44 billion to net profit.

• Basic and diluted EPS were RMB 1.33, down 18.9% year-over-year.

• Net assets attributable to shareholders at year-end were RMB 53.18 billion.

Outlook and guidance

• 2025 revenue target set at RMB 119 billion and profit target at RMB 12.6 billion, subject to market uncertainties.

• Strategic focus on consumer-driven innovation, digital transformation, international expansion, and supply chain optimization.

• Continued investment in R&D, digitalization, and sustainability initiatives.