China Mengniu Dairy Company (2319) H2 2025 earnings summary

Executive summary

• Full-year revenue for 2025 was RMB 82.24 billion, down 7.3% year-over-year, with gross profit margin rising 0.3 points to 39.9% and operating profit at RMB 6.56 billion (8.0% margin).

• Adjusted profit attributable to owners was RMB 3.96 billion, while net profit attributable to owners surged 1,378.9% to RMB 1.55 billion due to lower impairment provisions.

• EBITDA margin rose 2.7ppt to 7.7% year-over-year, with EBITDA at RMB 6,362.1 million.

• Strategic focus on product innovation, channel optimization, international expansion, and digital transformation.

• Liquid milk business remained under pressure but showed stabilization and improvement in the second half.

Financial highlights

• Gross profit was RMB 32,808 million, down from RMB 35,090.4 million in 2024.

• Selling expenses fell 6.5% to RMB 21.59 billion, but selling and administrative expense ratios rose slightly due to negative operating leverage.

• Operating cash flow reached a record RMB 8,750.5 million, with free cash flow at RMB 6.3 billion.

• CapEx further reduced to RMB 2,494.5 million, a 30.4% decrease year-over-year.

• Dividend per share increased to RMB 0.520, totaling RMB 2,017.0 million, with a three-year shareholder return plan.

Outlook and guidance

• Industry stabilization and policy support expected to boost dairy consumption and recovery.

• Focus on digital intelligence transformation, R&D innovation, channel upgrading, and brand-led growth.

• Plans to accelerate product innovation, expand into lower-tier markets, and enhance omni-channel capabilities.

• High-quality protein and functional nutrition products to be launched soon.

• 2026 positioned as a critical year for strategic execution and supply-demand balance.