China Mengniu Dairy Co ( (CIADF) ) has released its Q4 earnings. Here is a breakdown of the information China Mengniu Dairy Co presented to its investors.
China Mengniu Dairy Co., a leading player in the dairy industry, specializes in the manufacturing and distribution of a wide range of dairy products including liquid milk, ice cream, milk formula, and cheese. The company is known for its innovative approach and commitment to sustainability within the sector.
In its latest earnings report for 2024, China Mengniu Dairy Co. reported a revenue of RMB88,674.8 million, marking a 10.1% decrease from the previous year due to an imbalance in supply and demand and lower consumer demand. Despite this, the company managed to increase its gross profit margin by 2.4 percentage points to 39.6% and achieved an operating profit of RMB7,256.7 million, with an operating profit margin increase of 1.9 percentage points to 8.2%.
The company faced challenges with impairment losses from its subsidiary Bellamy’s and losses from associates, resulting in a profit attributable to owners of RMB104.5 million. However, it maintained a stable net cash inflow from operating activities of RMB8,332.3 million. Mengniu also proposed a dividend payout ratio increase to 45% for 2024, excluding certain impairments, with a total proposed cash dividend of RMB1,994.2 million.
Mengniu continued to execute its strategic initiatives, focusing on digital transformation and sustainability, including its “GREEN” strategy and “dual-carbon strategic goals.” These efforts aim to drive the company towards a greener future, as evidenced by the publication of the first TNFD report in China’s dairy industry.
Looking ahead, China Mengniu Dairy Co. remains committed to overcoming industry challenges and enhancing shareholder value through strategic initiatives and sustainable practices, as it continues to navigate the evolving market dynamics.