Sales pickup gives lift to China Mengniu Dairy
The Inner Mongolia-based company said in an analysts conference yesterday that its revenue had grown year on year since January this year. Gross profit margin is also expected to improve thanks to the launch of new products, better cost control and a rise in retail prices.
Shares of China Mengniu Dairy gained more than 4 per cent after the leading dairy firm said first-quarter sales picked up following a decline last year.
The Inner Mongolia-based company said in an analysts conference yesterday that its revenue had grown year on year since January this year. Gross profit margin is also expected to improve thanks to the launch of new products, better cost control and a rise in retail prices.
Mengniu shares rose 4.02 per cent to HK$22 yesterday, against a 0.7 per cent rise in the benchmark Hang Seng Index.
BNP Paribas analyst Charlie Chen said: "Last year was a transition period for Mengniu and it's no surprise to see its impact on its business performance. Yet we expect it will outpace average industry growth this year."
The mainland dairy industry was forecast to grow 12 per cent in 2013, he added.
Mengniu reported that revenue for the year to December dropped 3.5 per cent to 36.1 billion yuan (HK$45.1 billion) as changes to product mix led to a drop in sales volume.
