Mengniu reports US$5.825 billion revenue in H1 2025

CHINA – Mengniu, a leading dairy company, has reported revenue of US$5.825 billion (RMB41.56 billion) in the first half of 2025, due to persistent oversupply of raw milk and lower-than-expected recovery in consumer demand, resulting in a continued supply and demand imbalance in the dairy industry.

The Group’s gross profit for the period decreased to US$2.42 billion (RMB 17,352.3 million), primarily due to a decline in revenue during the period.

Gross profit margin increased by 1.4 percentage points to 41.7% as compared with the same period last year (2024: 40.3%) due to the decrease in raw milk prices.

Due to the decrease in sales revenue during the period and enhanced efficiency in expenses, investment in the first half of the year resulted in selling and distribution expenses decreasing by 8.4% to US$1.63 billion (RMB 11.61  billion), representing a decrease to 27.9% of the Group’s revenue.

The Group’s earnings before interest, taxes, depreciation, and amortisation (“EBITDA”) decreased by 4.1% to US$643.06 million (RMB 4.59 billion).

The Group’s income tax expenses totalled US$95.89 million (RMB 684.5 million), representing a 20.0% year-over-year increase.

Liquid Milk Business

The revenue totalled US$4.51 billion (RMB 32.19 billion), representing 77.4% of Mengniu’s total revenue (2024: 81.2%).

Room Temperature Product Business

The room temperature dairy category continued to face challenges, including weak consumer confidence and demand, periodic raw milk surpluses in the industry, and an imbalanced supply and demand. However, consumers’ demands for cost performance, quality-value ratio, emotional value, and immersive experience are growing.

Chilled Product Business

The chilled product industry continued its recovery, and Mengniu yoghurt sales continued to outperform the category. Mengniu’s chilled product division achieved 21 consecutive years of market leadership through multiple initiatives, including brand marketing, category value innovation, product structure optimisation, and enhanced channel development.

Fresh Milk Business

The fresh milk business achieved double-digit growth, significantly outperforming the industry and expanding its notable market share.

Premium brand Shiny Meadow maintained rapid growth, continuing to lead the high-end fresh milk market. Shiny Meadow focused on product innovation and upgrades, with sustained sales growth in its 4.0 and A2 series.

Milk Formula Business

The revenue was US$234.03 million (RMB 1.67 billion), accounting for 4.0% of Mengniu’s total revenue. In the first half of 2025, the infant formula industry gradually stabilised.

With growing demand for precise age-specific nutrition for infants and children, as well as products tailored to children’s nutritional needs, product functionality and formulations have become increasingly segmented and science-based.

Ice Cream Business

Revenue from the ice cream business amounted to US$542.19 million (RMB 3.87 billion), accounting for 9.3% of Mengniu’s total revenue.

The ice cream division closely aligned with consumer demand trends and channel transformation strategies, concentrating on its dual-core brand approach.

By strengthening the competitive edge of classic flagship products, launching multiple blockbuster new offerings, deepening integrated marketing initiatives, and expanding omnichannel distribution and market penetration, the division further optimised its product portfolio and enhanced brand competitiveness, driving double-digit growth in its ice cream business.

OUTLOOK

Supported by national policies aimed at boosting domestic demand, the macroeconomic environment and consumer confidence are expected to recover steadily.

With continued stabilization in raw milk prices and gradual restoration of the industrial chain resilience, supply and demand imbalances in the dairy industry will further improve, and milk sourcing advantages of leading dairy enterprises will become more prominent throughout the raw milk cycle.

Meanwhile, growing health consciousness is driving consumer demand for more specialised nutritional and health benefits from dairy products.

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