Yili Group (600887) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached RMB 32.94 billion, up 1.46% year-over-year; net profit attributable to shareholders was RMB 4.87 billion, down 17.71% year-over-year.

• Excluding non-recurring items, net profit attributable to shareholders rose 24.19% year-over-year to RMB 4.63 billion.

• Main business revenue for Q1 2025 was RMB 32.74 billion, with detailed breakdowns by product, sales mode, and region.

• Distributor count at period end was 18,092, a net decrease of 339 compared to the same period last year.

• Operating cash flow dropped 58.19% year-over-year to RMB 948 million, mainly due to a decrease in advance payments from distributors.

Financial highlights

• Basic and diluted EPS were RMB 0.77, down 17.20% year-over-year.

• Total assets at quarter-end were RMB 154.85 billion, up 0.73% from year-end 2024.

• Shareholders' equity increased 9.70% from year-end 2024 to RMB 58.34 billion.

• Gross margin improved as cost of sales declined slightly despite higher revenue.

• Liquid milk revenue: RMB 19.64 billion; milk powder and dairy products: RMB 8.81 billion; ice cream: RMB 4.11 billion; other products: RMB 0.18 billion.

Key financial ratios and metrics

• Weighted average ROE was 8.74%, down 1.78 percentage points year-over-year.

• Operating margin improved as operating costs fell year-over-year.

• Net margin declined due to lower non-recurring gains and reduced operating cash flow.