Mengniu: 2023 domestic dairy consumption in China showed signs of a modest recovery
Source: The DairyNews
China Mengniu Dairy Company Limited (Stock Code: 2319) has unveiled its 2023 annual results, showcasing robust performance despite challenges in the dairy sector.
The report reveals a total annual revenue of RMB 98.62 billion, marking a notable year-on-year growth of 6.5%. Operating profit surged to RMB6.17 billion, reflecting an increase of 13.8%.
Throughout 2023, Mengniu navigated a dynamic landscape characterized by a modest recovery in domestic dairy consumption, evolving consumer preferences, and intensified market competition.
"Throughout 2023, domestic dairy consumption showed signs of a modest recovery, with the growth rate of dairy product consumption experiencing a short-term slowdown and the reorganization of online and offline sales channels. These factors contributed to increased market competition. In the post-pandemic era, Chinese consumers' awareness of nutrition and health has continued to rise, showcasing the strong resilience in demand for dairy products", - company reported.
Key highlights of Mengniu's performance include:
Furthermore, sub-brands like "Xiaoxianyu" targeted at young consumers achieved remarkable sales growth, solidifying Mengniu's position in the mid-to-high-end fresh milk market.
Amidst evolving consumer trends and market dynamics, Mengniu remains focused on innovation, brand-building, and meeting consumer needs across various product segments, ensuring sustained growth and market leadership in the dairy industry.
Throughout 2023, Mengniu navigated a dynamic landscape characterized by a modest recovery in domestic dairy consumption, evolving consumer preferences, and intensified market competition.
"Throughout 2023, domestic dairy consumption showed signs of a modest recovery, with the growth rate of dairy product consumption experiencing a short-term slowdown and the reorganization of online and offline sales channels. These factors contributed to increased market competition. In the post-pandemic era, Chinese consumers' awareness of nutrition and health has continued to rise, showcasing the strong resilience in demand for dairy products", - company reported.
Key highlights of Mengniu's performance include:
- Growth in the core "liquid milk" business, expanding market share continuously.
- Strengthened market position of "Milk Deluxe," maintaining leadership in the high-end market segment.
- Counter-trend growth and sustained market leadership in chilled yogurt business, emphasizing taste, nutrition, and functionality.
- Outpacing industry growth in the fresh milk segment, with "Shiny Meadow" leading the high-end market with upgraded quality.
- Successful channel transformation, leveraging offline and online retail channels to reach consumers effectively.
- Continued dominance in online sales, with over 74 million online members in new retail channels.
- Strengthened control over rural markets, covering extensive distribution points across townships.
- Flagship products like "Milk Deluxe" and "Just Yoghurt" drove market innovation through product differentiation and brand enhancement.
Furthermore, sub-brands like "Xiaoxianyu" targeted at young consumers achieved remarkable sales growth, solidifying Mengniu's position in the mid-to-high-end fresh milk market.
Amidst evolving consumer trends and market dynamics, Mengniu remains focused on innovation, brand-building, and meeting consumer needs across various product segments, ensuring sustained growth and market leadership in the dairy industry.
