Mar 28 - Mengniu Dairy: Net Profit Increases 28.4% to CNY 1.59 Billion in 2011

Source: Hong Kong Stock Exchange, ChinaScope Financial (Data)  

+       On March 27, Mengniu Dairy Co., Ltd. (2319. HK) released its annual report, showing that the company’s operating revenue increased 23.5% year-on-year to CNY 37.39 billion in 2011, and net profit increased 28.4% year-on-year to CNY 1.59 billion. Earnings per share (EPS) increased 27.5% to CNY 0.908.

+       In 2011, 90% of Mengniu’s revenues came from liquid milk sales, from which it made CNY 33.7 billion. WU Jingshui, Mengniu’s Executive Director and CFO, said that in the next three to five years, the company plans to invest CNY 3-3.5 billion in pasture construction, and expand its cattle stock by 150,000.

Mengniu Dairy’s (2319.HK) gross margins remained stable in 2011, supported by growing sales revenue from liquid milk.

Inventory turnover slowed down, possibly caused by an increase in prices – below estimated as revenue/production capacity.

Mengniu Dairy’s production capacity accounts for a significant proportion of the national aggregate.

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