| Rising consumer wealth lifts nation's milk sales |
SHANGHAI, Apr. 13 -- China Mengniu Dairy Co reported that profit soared 59 percent last year as growing income helped boost milk consumption and spur demand for high-end products.
China's biggest producer of liquid milk earned 727 million yuan (US$94.47 million) last year, compared with 457 million yuan in 2005, according to a statement filed yesterday with the Hong Kong stock exchange.
Sales revenue increased 50.1 percent on year to 16.2 billion yuan, the Inner Mongolia-based company said.
Liquid milk sales, which grew 53.1 percent to 14.26 billion yuan last year, continued to be the major revenue contributor to Mengniu after introducing so-called high added-value products, which include nutritional additives.
Mengniu held a 36.5 percent share of China's liquid milk market last year, ahead of major rivals such as Yili Industrial Group's 28 percent and Shanghai-based Bright Dairy & Food Co's eight percent, according to the National Commercial Information Center of China.
The growth in dairy products mirrored China's robust economic expansion and rising consumer purchasing power.
China's dairy sales rose 23 percent last year to 104.1 billion yuan, and the country's dairy demand is expected to increase 12.8 percent in 2010 to about 38 million tons, according to industry analysts.
The booming market has produced keen competition, not just among local players but also from foreign enterprises.
Last December, Mengniu agreed to form ventures with Paris-based Groupe Danone SA to increase its capability to make high-end yogurt products and diversified its tastes to meet local demand.
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