The Chinese dairy giant Yili Group shows a strong recovery in the first quarter of this year compared to the same period last year. Turnover in Q1 amounts to €3,56 billion, a plus of 32,5%. The net profit is €368 million, an increase of more than 147%. These growth figures have been distorted by the corona crisis, which hit China hard at the beginning of last year.
The figures published by Yili show that China has now recovered from this crisis. Yili says it has achieved a turnover of € 2020 billion in the past year 12,6. The profit is €910 million. In view of the first quarter profit of 2020, the dairy group is therefore heading for a significantly higher profit this year.
In the first quarter of 2020, Yili Group still had a turnover of €2,7 billion. Earnings in the quarter were also a meager €149 million. These figures are much lower than expected at the time. As a result, the turnover and profit of the first quarter in 2021 compared to the first quarter in 2020 therefore look a lot brighter.
Pan Gang, the CEO of Yili Group, makes no bones about the ambitions of the dairy group in a statement. Yili wants to conquer the world, where healthy is central. “Yili is committed to creating a better business, developing healthier products, promoting healthier living and caring for a healthier world.”
gain trust
Yili wants to achieve this, according to Pan Gang, by building a 'global health ecosystem'. “To create common wealth while becoming a social enterprise that outperforms the market competition, gains consumer trust and is recognized by all stakeholders.”
Like many dairy companies, such as FrieslandCampina and Arla Foods, Yili strives to increase the sale of products with the highest added value (such as branded products). The Chinese dairy group managed to increase sales in this segment by 9,6%. The turnover of innovative products amounted to 16% of the total turnover.
Towards climate neutral in 2060
In response to the corona crisis, Yili has expanded its e-commerce channels, resulting in a 55% increase in turnover through these digital sales channels. The group aims to expand its market share in Southeast Asia, Oceania and other overseas markets. For example, a dairy factory in Indonesia is being built and Yili saw turnover in Thailand, undoubtedly affected by corona, grow by 68%.
In New Zealand, Yili has invested in the R&D and production improvement of the Hokitika plant in Westland Milk, which was purchased in 2019. The centuries-old butter brand Westgold is now sold in more than 20 countries. Yili Group declares that it wants to continue to grow and acquire more share in the dairy sector in Asia. The Chinese government has also set the goal of being CO2 neutral by 2060. Yili Group is trying to contribute to this by innovating in sustainable developments.
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
