CHINA – Chinese dairy company, Yili has reported a 30% growth in profits for the first 9 months of 2021, outstripping expectations and signaling a new outlook for the company’s growth prospects.
Total operating revenue for the company jumped 15.23% to RMB 85.007 billion (US$13.27 billion) while the company’s net profits grew 31.82% to RMB 7.967 billion (US$1.24 billion), a press statement from the company revealed.
During the 3 quarters of the year, Yili stood out as the pacesetter in China’s dairy market with its liquid milk and ice cream product being among the leaders in their categories.
Yili reported that its Satine Organic Milk, AMBPOMIAL, and Changqing have clinched first place in their respective market segments.
Yili’s Xinhuo adult milk powder has also led the market segment in sales volume, while Jinlingguan has been the infant formula brand which has seen the most rapid growth in China’s market.
During the first three quarters of 2021, Yili’s infant formula category has reached a growth rate of more than 30% year-on-year.
The company further noted that its new product sales have risen strongly, with brand potential beginning to emerge as the new force underpinning Yili’s performance growth.
“We will invest more in the tracks focused on new consumption trends and aspire to do our best in each of them,” Pan Gang, the Chairman of Yili Group, said.
“We will also accelerate our digital transformation to boost the overall operational efficiency of the Group, in a bid to achieve our strategic objectives.”
To bolster its position in the infant and nutrition market Yili recently agreed to a stake in goat milk formula company Ausnutria Dairy, becoming its largest shareholder.
Yili said the new partnership will strengthen its position within the milk formula space and help the company to successfully enter the nutrition products market.
Biodiversity protection initiatives
Meanwhile, as socially responsible corporate citizen, Yili has has announced its latest biodiversity protection initiatives, the “Save Endangered Asian Elephants” and “Smart Grasslands” projects.
The Smart Grasslands projects aims to monitor and collect data on grasslands which will be applied to collect data to support scientists conducting related research and future conservation projects.
Yili also committed to promoting integrated farming on the pasture in an affort to enrich degraded grasslands in the Inner Mongolia region.
The company also plans to work with the China Green Foundation over the next five years and invest at least RMB 5m ($780,000) to save the endangered Asian elephant.
The “Save Endangered Asian Elephants” project will cover five areas: restoring habitats, rescuing wild elephants, strengthening protection methods, collaborating with communities, and educating the public about natural sciences.
On top of restoring the natural habitats, Yili has pledged to ensure harmonious coexistence between the elephants and local communities by establishing a complete monitoring system and promoting safety awareness education.
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