The company said it realized an operating income of about RMB21.5bn ($3.8bn), up 15% year-on-year, and total profits of around RMB3.3bn ($520m), up 20% year-on-year in January and February 2022.
Yili said growth in overall consumption led to the company’s best-ever start to a year in history, with a single-month operating income of more than RMB10bn ($1.57bn).
The company said it has continuously optimized its product portfolio, upgraded the product lines and offered “richer product experience to consumers.”
In January and February 2022, the business segments of liquid milk, milk power and dairy products, and ice cream saw growth momentum. Satine, Ambrosial, Jinlingguan, Chocliz, Gemice, Chang Qing, Meiyitian and Cheese Bars for Kids saw a three-percentage-point YoY growth in market share.
As sales of Jinlingguan infant formula milk powder grow and the cheese business doubles, Yili said it is now on its way to establishing a second growth curve. In January and February, the sales revenue of Jinlingguan rose by at least 30% year on year, ranking first in the industry.
In February, Yili upgraded its Jinlingguan infant formula milk powder, which it said makes it the only leading milk power producer to meet the strict new national standard. In addition, Yili has entered into an agreement to acquire Ausnutria by way of a tender offer. After the merger, Yili said it will see fast growth in its milk power business.
At present, Yili receives milk supplies from Youran Dairy, the largest cow breeder in China, and Zhongdi Dairy, and has also acquired Westland Dairy, the second largest dairy company in New Zealand. With the acquisition of Ausnutria, with dairy resources in the Netherlands and Australia, Yili said it will further enhance its advantages in milk supply.
Yili has 15 R&D innovation centers and 13 overseas production bases and sells its products to more than 60 countries and regions.