Country for PR: China
Contributor: Xinhua News Agency
Wednesday, September 01 2021 - 20:47
AsiaNet
Yili Achieves Double-Digit Growth in Revenue and Net Profit in H1 FY2021
HOHHOT, China, Sept. 1, 2021 /Xinhua-AsiaNet/--

- Yili exceeds market expectations with double-digit growth in revenue and net 
profit in H1 FY2021. 
- Yili's strong financial performance reflects efforts at innovation and 
improvement of products, distribution channels, and global network.

On August 30th, Yili - Asia's leading dairy company - released its FY2021 H1 
financial report. The company exceeded market expectations with double-digit 
growth in revenue and net profit, with gross revenue rising 18.89% YoY to reach 
RMB 56.506 billion, and net profit attributable to the parent company jumping 
42.48% YoY to reach RMB 5.322 billion. 

Yili's interim results set another new high for the Asian dairy industry, as 
the latest data makes Yili the first likely dairy company in Asia to exceed RMB 
100 billion in revenue. Strong financial performance in H1 FY2021 also suggests 
that the company will likely continue to maintain its momentum.

Further market expansion for core products

In the first half of 2021, the dairy industry faced significant challenges from 
global economic and trade instability and rising costs for raw materials. 
However, Yili exceeded its operation targets for the period by leveraging its 
competitive advantages across the whole industry value chain.

During the reporting period, Yili's main products continued to exhibit strong 
growth. For instance, the total sales revenue for Satine, AMBPOMIAL, Changqing, 
Jinlingguan, and Chocliz increased by 20.7% YoY. In particular, the AMBPOMIAL 
AMX Zero Sugar yoghurt and AMBPOMIAL 5G-Protein yoghurt series, launched in the 
second half of 2020, saw rapid growth and great brand development potential. 
Meanwhile, the sales revenue of new product categories represented by Satine A2 
Beta-casein Organic Pure Milk, Yili Zhennong High-calcium Milk, Changqing Tea & 
Fruit Yogurt, and Cute Star Child Growth Goat Milk accounted for 15.6% of 
Yili's total revenue and became essential contributors to Yili's performance. 

Extending and diversifying product lines  

During the reporting period, the retail sales of cheese products more than 
doubled year over year, giving the company a head start in the segment with 
high growth potential. 

The company's low-temperature milk business also grew fast, with 5.7% increase 
in market share.

Yili's Jinlingguan series of high-end infant formula, developed with support 
from nineteen years of breast milk research and high-quality milk sources such 
as organic and A2 milk, is also widely recognized as a reliable and 
good-quality product in the market. Nielsen retail data showed the retail sales 
of infant formulas increased by 35.2% YoY, in which the growth rate of 
Jinlingguan Zhenhu reached 37% to become the fastest-growing brand in its 
segment. 

In the non-dairy category, Yili's Inikin Yike mineral water also made a 
breakthrough in sales growth and has mainly been distributed in big cities 
through e-commerce, O2O home delivery, and other channels. Manufacturing plants 
for the product are now operating at full capacity. 

Upgrading distribution channels and strengthening the global network

The ongoing impact of COVID-19 has affected consumption behaviors and 
scenarios. Of note, there has been an accelerated growth in the contributions 
of new retail and e-commerce to the total retail sales of consumer goods. 

While leveraging existing advantages in its distribution channels, Yili also 
embraced digital channels in response to the latest market trends. Yili's 
e-commerce business grew 21.8% YoY in the first half of 2021, contributing to 
the high market penetration rate of 85.7% for its UHT milk.

In addition, Yili also leveraged synergy within its "global supply chain 
network" to ensure the efficient operation of its supply, production, and 
marketing systems. As of June 2021, the company's total production capacity 
neared 13.94 million tons per year.

In August this year, Rabobank released its annual Global Dairy Top 20 list, in 
which Yili Group was again listed among the top five global dairy companies. 
Yili was also ranked as the leading company in Asia for eight consecutive years.

Source: Yili Group

Image Attachments Links:

   Link: http://asianetnews.net/view-attachment?attach-id=399569

   Caption: On August 30th, Yili released its FY2021 H1 financial report. The 
company exceeded market expectations with double-digit growth in revenue and 
net profit, with gross revenue rising 18.89% YoY to reach RMB 56.506 billion, 
and net profit attributable to the parent company jumping 42.48% YoY to reach 
RMB 5.322 billion.

Attachments
Yili growth.jpg