Chinese dairy giant Yili continues to grow unbridled

The Chinese dairy giant Yili has further increased its turnover and profit figures in 2022. This trend will also be continued in the first quarter of this year.

Yili has been late for years impressive growth figures to see. Turnover also grew strongly in 2022, by 11,3% to 123 billion Chinese renminbi. Converted, this is equivalent to more than €16 billion, making it the largest dairy company in the world. Profit increased by 8,34% to €1,2 billion, giving the company a net profit margin of 7,66%. This is a fraction lower than in 2021. The good trend will be continued in the new year, with turnover in the first quarter being more than 7% above the level of the same period in 2022.

Turnover outside China increased by no less than 52% last year. This is partly a result of the increased dairy prices, but is also due to the company's growth strategy. In the Netherlands, among others, Yili bought turnover, taking a majority interest milk powder producer Ausnutria. The company is also expanding in New Zealand.

In the annual report, Yili again expresses its ambitions to operate CO2050 neutral by 2. It is not entirely clear what that route will look like exactly. Furthermore, Yili reports in the annual report that they became a partner of the prestigious World Economic Forum last year.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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