Mengniu H1 Revenue Hits RMB44.8B, Operating Profit Record, Lifts Annual Growth Target

Mengniu Dairy held its 2026 interim results conference in Hong Kong on August 27. According to the financial report, the company generated revenue of RMB44.8 billion in the first half, up 7.8% year-on-year. Operating profit reached RMB3.68 billion, a record high, while net profit attributable to shareholders rose 15.9% to RMB2.37 billion. Comparable net profit attributable to shareholders stood at RMB2.691 billion, up 31.52%.

Across its core business, all six segments achieved growth. Fresh milk, milk powder, and cheese each posted growth exceeding 30%. In the ambient segment, Deluxe and Mengniu's flagship pure milk both recorded high single-digit growth, driven by product mix upgrades. During the period, Mengniu launched M-Plus high-protein milk, a strategic new product, along with milk calcium electrolyte drinks and isolated whey protein water. It also introduced the Hi-Milk functional product portfolio and the Buff functional series in the traditional liquid milk categories of Deluxe and Purezen. In the low-temperature segment, Guanyiru launched functional products aimed at boosting immunity, while Meirixianru introduced a high-protein series. Fresh milk maintained rapid growth in new channels such as membership stores and instant retail, achieving an overall increase of over 30%. Ice cream revenue reached RMB4.21 billion, up nearly 10%. On a comparable basis, the milk powder segment grew over 30%, with overseas brand Bellamy's revenue rising more than 60%. Infant formula and mid-to-older-age milk powder sustained growth of over 20% for the second consecutive year.

The cheese segment, driven by Milkground, grew over 30%, with Milkground maintaining growth above 20% for three consecutive quarters.

In its two-wing businesses, Mengniu made breakthroughs in nutrition and health innovation. In deep processing, the company established a new brand, Milk Cube, achieving independent mass production of key raw materials including lactoferrin, casein, and demineralized whey powder D90. Lactoferrin extraction is highly challenging, requiring 14 kilograms of milk to yield just one gram, and this move ended long-standing reliance on imports, with scale production capacity now in place. In medical nutrition, Mengniu's self-developed Ruibao'an special medical food received regulatory approval for market launch. Internationally, Shiny Meadow achieved triple-digit growth in Hong Kong, while Deluxe ice cream and Milkground cheese products entered the Hong Kong and Macau markets. In Southeast Asia, Aice solidified its number-one share in Indonesia, ranked second in ready-to-eat ice cream in the Philippines, and rose to second place in Vietnam. Organic milk powder brand Bellamy's achieved rapid growth through cross-border and local expansion.

In March 2024, Gao Fei succeeded Lu Minfang as president of Mengniu. Two years ago, the company introduced its "One Body, Two Wings" strategy, with six core businesses forming the body and innovation and international operations as the wings. Gao Fei said at the results conference that the strategy's core is to diversify the business and shift the development model from scale growth to value creation and deep value cultivation. The most notable product innovation in the first half was M-Plus high-protein milk, launched on the opening day of the World Cup. The product uses self-developed physical multi-stage membrane separation technology to deliver 15 grams of native high protein per 100 milliliters without adding protein powder, and enzyme hydrolysis technology for zero lactose.

In terms of channel strategy, Mengniu consolidated its traditional channel base while capturing growth from new channels such as membership stores, instant retail, and livestream e-commerce. It also offered channel-specific products tailored to different user profiles, with products such as Sam's Club organic high-calcium fresh milk and Modern Meadow direct-delivery zero-lactose soft milk already on the market. In technology and innovation, Mengniu leverages its nine global R&D bases, collaborates with over 60 domestic and international research institutions and more than ten academicians to build a collaborative innovation ecosystem, and develops a three-tier nutrition track covering basic nutrition, functional nutrition, and medical nutrition. It also advances domestic substitution of core raw materials through four proprietary platforms: deep processing, probiotics, synthetic biology, and full-chain clinical research.