Mengniu H1 Revenue Up 7.8% to RMB44.79 Billion, Net Profit RMB2.37 Billion

Mengniu Dairy announced unaudited interim results for the six months ended June 30, 2026, on August 26. During the period, the group achieved revenue of RMB44.795 billion, up 7.8% year on year, and net profit of RMB2.372 billion, up 15.9%. Operating profit reached RMB3.676 billion, with an operating margin of 8.2%. The share of results from associates turned from a loss of RMB585 million in the same period of 2025 to a profit of RMB40 million. During the period, due to income tax adjustments required under the Corporate Income Tax Law, profit attributable to equity shareholders decreased by RMB319.9 million.

All six business segments under the "One Body, Two Wings" strategy achieved growth, accelerating business diversification. Liquid milk led the industry in growth, while fresh milk, cheese, and milk powder (on a comparable basis) each grew by more than 30%. In the first half, liquid milk revenue was RMB33.865 billion, accounting for 75.6% of total revenue. The ambient business iterated products across five directions, including affordable value-for-money and nutritional quality. Telunsu continued to solidify its position in the premium market while expanding into functional categories. Chilled yogurt strengthened its functional advantages through health-food-certified products. Fresh milk growth outpaced the industry, with the premium brand Shrixian winning multiple international awards for several products.

Ice cream revenue reached RMB4.207 billion during the period, achieving double-digit growth. In the overseas segment, Aice maintained leading market shares in several Southeast Asian countries. Cheese revenue was RMB3.148 billion, with Milkground holding the top overall market share in packaged cheese. Milk powder revenue was RMB2.058 billion. The domestic infant formula brand Ruben launched several new premium products, while the adult milk powder brand Yourui deepened its focus on precise nutrition for middle-aged and elderly consumers, ranking first in online market share for that category. The overseas brand Bellamy's organic revenue grew more than 60% year on year.

In innovation, the group increased R&D investment in nutrition, health, and biotechnology. Naifang achieved independent mass production of high-end dairy raw materials such as lactoferrin. The sports nutrition brand Maxine maintained rapid growth. Hongmo Bio completed approvals for multiple human milk oligosaccharide products and won two international technology gold awards. Financial data showed first-half gross profit of RMB18.258 billion, with a gross margin of 40.8%, down 0.9 percentage points year on year, mainly due to earlier product price adjustments and higher packaging and some auxiliary material costs. Selling and distribution expenses were RMB12.362 billion, accounting for 27.6% of revenue.

Affected by tax adjustments, income tax expenses rose 67.9% year on year. At the end of the period, the group's interest-bearing borrowings increased, pushing the debt-to-equity ratio to 64.9%, while financing costs declined year on year. Net cash inflow from operating activities was RMB2.493 billion. At the reporting date, the group had current liabilities exceeding current assets; management, based on future cash flow forecasts, judged that the group has sufficient operating resources. During the reporting period, Mengniu conducted share buybacks, repurchasing a total of 7.41 million shares on the open market, with some subsequently cancelled, aiming to enhance earnings per share.