China Mengniu Dairy Company Limited (Mengniu Dairy) reported FY2025 revenue of RMB 82.24 billion, down 7.3 % year-on-year, but gross margin improved 0.3 ppt to 39.9 %. Operating profit slipped 9.5 % to RMB 6.56 billion, yet profit attributable to shareholders surged 1,378.9 % to RMB 1.55 billion due to lower impairment charges. Basic EPS rose to RMB 0.396.

Segment mix • Liquid milk contributed RMB 64.94 billion, or 79 % of revenue. • Ice-cream sales reached RMB 5.39 billion, up 4.2 %. • Cheese revenue advanced 21.9 % to RMB 5.27 billion. • Milk formula rose 9.7 % to RMB 3.64 billion. Fresh milk, milk powder and cheese all delivered double-digit growth, offsetting softness in room-temperature milk.

Cost & expense trends • Selling and distribution expenses fell 6.4 % to RMB 21.61 billion, equal to 26.3 % of revenue (2024: 26.0 %). • Administrative expenses declined 1.9 % to RMB 4.15 billion. • Finance costs dropped 34 % to RMB 0.97 billion as interest-bearing debt was cut to RMB 25.39 billion (-26.7 %). Debt-to-equity improved to 53.8 % (2024: 72.1 %).

Cash flow & capex Operating cash inflow reached a record RMB 8.75 billion, up 5.0 %. Capital expenditure was trimmed 30.4 % to RMB 2.49 billion.

Balance sheet highlights Total equity stood at RMB 47.18 billion, while net borrowings declined to RMB 12.13 billion. EBITDA rose 42.6 % to RMB 6.36 billion, lifting EBITDA margin to 7.7 %.

Shareholder returns The board recommends a final dividend of RMB 0.520 per share, equating to a payout of RMB 2.02 billion. Management also released a three-year shareholder-return plan (2025-2027) targeting rising dividends and continued share repurchases; 39.07 million shares were bought back for HKD 610.60 million during 2025.

Outlook Management will continue to advance its “One Core, Two Wings” strategy—prioritising brand leadership, R&D innovation, digital transformation and channel optimisation—while focusing on balancing supply and demand, diversifying categories and strengthening supply-chain resilience as it enters the first year of China’s 15th Five-Year Plan in 2026.