Ausnutria Dairy reports 18% revenue loss in H1 2026

CHINA – Goat and infant formula manufacturer Ausnutria Dairy Corporation has reported an 18.6% year-on-year decline in consolidated revenue for the first half of 2026, swinging to a net loss attributable to equity holders.

The interim financial downturn marks a reversal from the net profit recorded in the corresponding period of the previous year, highlighting the mounting structural pressures facing specialized infant nutrition processors operating in the Greater China market.

Company management attributed the revenue contraction primarily to one-off, proactive operational and distribution channel adjustments implemented during the six-month period.

These organizational realignments were designed to optimize commercial inventory levels and streamline wholesale routes to market, but resulted in short-term top-line volume disruption across key regional accounts.

Demographic headwinds served as a primary external catalyst behind the softened performance. China’s historically low birth rate, with annual births dropping below eight million, has permanently compressed the addressable domestic infant formula consumer base.

This shrinking volume pool has intensified price and shelf-space competition among domestic and multinational formula brands attempting to defend market share.

Performance across Ausnutria’s flagship goat milk nutrition brand, Kabrita, also experienced temporary setbacks in the Chinese market.

The brand’s sales volumes fell during the half due to temporary supply tightness in select formulations, combined with deliberate dealer inventory adjustments as the company restructured its distribution agreements to improve long-term retail sell-through.

Looking ahead, the group aims to navigate China’s demographic contraction by accelerating product diversification into functional adult nutrition, expanding medical foods, and extending Kabrita’s international footprint across emerging markets in Southeast Asia, the Middle East, and North America.

The Ausnutria Group reported a revenue increased by 1.2% to US$1.1 billion (RMB 7,488 million), while operating profit (EBITDA) decreased by 14.8% to US$77.1 million (RMB 518.1 million) in full year 2025.

One-off impairments and provisions negatively impacted results, as did continued pressure from the shrinking Chinese infant and toddler nutrition market.

Net profit for 2025 declined by 24.8% to US$26.4 million (RMB 177.5 million). The overall market situation requires adjustments to the effectiveness and efficiency of Ausnutria Netherlands’ production organization, with consequences for jobs in Leeuwarden and Kampen.

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