Mengniu Dairy (02319) announced its 2025 interim results, achieving revenue of RMB 41.5672 billion, down 6.9% year-on-year. Gross margin improved by 1.4 percentage points year-on-year to 41.7%. The company recorded operating profit of RMB 3.5382 billion, with operating margin rising 1.5 percentage points year-on-year to 8.5%. Net profit attributable to equity shareholders reached RMB 2.0455 billion, with earnings per share of RMB 0.523.
During the reporting period, facing the new environment and stage of industry development, Mengniu continued to focus on high-quality development and comprehensively advanced its "One Core, Two Wings" strategy. The company consistently strengthened its six core dairy business fundamentals and drove diversification in product category structure. Simultaneously, it accelerated the development of its "Two Wings" businesses, continuously achieving key technological breakthroughs and commercialization in the nutrition and health sector. International business revenue achieved rapid growth, with overseas market coverage expanding in both breadth and depth, injecting new momentum into Mengniu's development.
On the operational front, Mengniu continued to drive operational excellence through lean management for quality improvement and efficiency enhancement, prudent expense management, and digital transformation upgrades. These measures comprehensively activated organizational efficiency, improved rapid response capabilities to market changes, and enhanced operational efficiency, resulting in steady improvement in operating margin and consistently robust free cash flow.
Currently, channel patterns are showing diversified development, and Mengniu is accelerating the optimization and restructuring of its distribution models. While refining and optimizing traditional and modern channel strategies, the company continues to build an omni-channel business model that integrates online and offline domains, accelerates coverage in lower-tier markets, and deepens cooperation with high-growth potential channels such as membership stores, snack retail chains, instant retail, content e-commerce, and live-streaming e-commerce. The company is accelerating customized product development and expanding B2B business in rapidly growing food service sectors such as tea and coffee shops and bakeries, establishing partnerships with multiple leading domestic and international brands to drive sales conversion across multiple dimensions.
Furthermore, Mengniu continues to capitalize on digital transformation opportunities, focusing on channel efficiency improvement, supply chain cost reduction, and consumer services. The company is conducting systematic and integrated transformation of the dairy industry chain to fully unleash the efficiency potential of the dairy industry value chain and create new quality productive forces in the dairy sector.