China: Mixed Mid-Year Performance for Dairy Companies in 2024
Source: The DairyNews
Recently, several dairy companies released their mid-year performance forecasts. Tianrun Dairy, Maiqu'er, Manor Ranch, and Huangshi Group have all reported declines in net profit attributable to mothers compared to the same period last year. However, Miaokelando is projecting a significant increase in net profit attributable to mothers, estimating growth between 128%-215%.
Red Star Capital Bureau noted that Tianrun Dairy, Maiqu'er, and Manor Ranch, all regional dairy enterprises, attributed their profit declines to falling raw milk prices and intense market competition. Although Huangshi Group also experienced a decline in profits, it attributed the primary cause to a high baseline from the sale of equity in the same period last year. Despite this, Huangshi Group’s dairy sector subsidiaries have seen revenue growth. Cheese leader Miaokelando, amidst falling raw milk prices, benefited from reduced raw material procurement costs, boosting its profit compared to last year.
Profit Decline in Regional Dairy Enterprises
The fierce market competition led dairy companies to promote their products aggressively, reducing profits. Tianrun Dairy predicts a loss of 26 million to 31 million yuan for the first half of the year, a downturn from a net profit of 126 million yuan in the previous year. Maiqu'er expects a net loss of 58 million to 68 million yuan, a drop of 55.21%-81.97% compared to last year. Manor Ranch forecasts a loss of 70 million to 95 million yuan, an increase from a loss of 20.16 million yuan in the same period last year.
Positive Outlook for Huangshi Group's Dairy Sector
Huangshi Group, originally a dairy business that later diversified into film, information services, and photovoltaics, has declared a focus on dairy and photovoltaics as its core businesses going forward. This year, the group emphasized its dairy segment’s positive impact, especially in specialty channels like mother and baby stores and the Guangdong market. Excluding the transferred Yunnan Huangshi Laisier Dairy and Yunnan Huangshi Laisier Intelligent Dairy, its other dairy sector subsidiaries saw a revenue increase of about 10% year-over-year, with particularly strong growth in the Guangdong market.
Significant Profit Increase for Miaokelando
Miaokelando expects a substantial increase in net profit for the first half of the year, estimated between 65 million to 90 million yuan, up 128%-215% year-over-year. The company credits this increase to lower raw material costs and effective cost-reduction measures, which have decreased the ratios of selling and management expenses. The company also benefited from new product launches, especially in baking, and a stronger online presence for its traditional cheese sticks, which reduced distribution costs.
Red Star Capital Bureau, China
Profit Decline in Regional Dairy Enterprises
The fierce market competition led dairy companies to promote their products aggressively, reducing profits. Tianrun Dairy predicts a loss of 26 million to 31 million yuan for the first half of the year, a downturn from a net profit of 126 million yuan in the previous year. Maiqu'er expects a net loss of 58 million to 68 million yuan, a drop of 55.21%-81.97% compared to last year. Manor Ranch forecasts a loss of 70 million to 95 million yuan, an increase from a loss of 20.16 million yuan in the same period last year.
Positive Outlook for Huangshi Group's Dairy Sector
Huangshi Group, originally a dairy business that later diversified into film, information services, and photovoltaics, has declared a focus on dairy and photovoltaics as its core businesses going forward. This year, the group emphasized its dairy segment’s positive impact, especially in specialty channels like mother and baby stores and the Guangdong market. Excluding the transferred Yunnan Huangshi Laisier Dairy and Yunnan Huangshi Laisier Intelligent Dairy, its other dairy sector subsidiaries saw a revenue increase of about 10% year-over-year, with particularly strong growth in the Guangdong market.
Significant Profit Increase for Miaokelando
Miaokelando expects a substantial increase in net profit for the first half of the year, estimated between 65 million to 90 million yuan, up 128%-215% year-over-year. The company credits this increase to lower raw material costs and effective cost-reduction measures, which have decreased the ratios of selling and management expenses. The company also benefited from new product launches, especially in baking, and a stronger online presence for its traditional cheese sticks, which reduced distribution costs.
Red Star Capital Bureau, China
