CHINA – Chinese dairy giant Yili Group has achieved the fastest growth rate in the dairy industry after it posted a 58.25% rise in the milk powder and dairy product business in the first half of 2022.

The dairy’s total revenue and net profit reached new heights of RMB 63.463 billion ($9.2 billion) and RMB 6.139 billion ($0.89 billion), up by 12.31% and 15.40% year-on-year, respectively.

In addition, the company’s total revenue outperformed the second tier by over RMB 15 billion ($2.17 billion), widening the gap to 33% from 25% in the previous year.

Yili has confirmed that its infant formula has achieved the fastest growth and adult milk powder remained the leader in its segment.

The liquid milk business took the largest market share with an expanding strength, growing at a rate of 31.71% to total revenue of RMB 42.892 billion ($6.218 billion), leading the industry in terms of scale and market share.

In the ice cream business, which has held the largest market share for 28 years in a row, Yili said it has kept growing with a wider margin during the same period, topping the industry with year-on-year growth in sales of 31.71%.

The cheese category, the top-selling product in China’s dairy products category, also grew by leaps and bounds, expanding by over 40%.

In total, the milk powder, cheese business, and other dairy products kept growing realizing revenue of RMB 12.071 billion (US$1.75 billion).

Other categories that include organic milk, milk-based nutrients, cheese snacks, natural mineral water, and other businesses have shown high growth potential realizing over 20% year-on-year, of which the sales of Inikin Yike live fountain has more than doubled in H1 this year.

During the reporting period, Yili revealed that it has accelerated its pace of rolling out new products and full life-cycle coverage, with new product revenue accounting for 12.48%.

Some of the products launched include Satine Ultra-filtered Milk, Cute Star A2β-casein Pure Milk, and Jinlingguan Seine Mouiller A2 OPO Organic Infant Formula.

Furthermore, utilizing its global operating platform, Yili has enabled efficient coordination among its bases in China, Southeast Asian countries, and New Zealand, attaining a 58% rise year-on-year in overseas revenue.

The Chinese dairy added that the growth in the overseas markets was the account of an ensured timely delivery of products by optimizing global supply chain networks.

Commenting on Yili’s future development, Pan Gang, Chairman and President of Yili Group, said: “Despite the challenges in the external environment, we remain confident and capable of improving our core competencies after surpassing the annual income of over RMB 100 billion (US$14.49 billion), so that we may unleash the potential for value creation and future development. ”

At the same time, we will share our values with consumers, employees, players across the whole industrial chain and all of society under the guidance of our New Vision for Value Creation.”

Meanwhile, the company has also committed to extending its reach to novel channels by seizing new growth opportunities in maternal and infant, catering, e-commerce, community group purchases, and other special channels to better serve all consumers in inclusion.

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