"Blue Chip" Mengniu's interim net profit of 2.046 billion yuan fell by 16.4% and no dividend is declared

Mengniu Dairy (02319.HK) announced its interim results for the six months ending in June, with revenue of RMB 41.567 billion, a year-on-year decrease of 6.9%. This decline is primarily due to a continued phase of oversupply in raw milk and demand recovery falling short of expectations, resulting in ongoing supply-demand contradictions in the dairy industry. The company recorded a net profit of RMB 2.046 billion, down 16.4%, with earnings per share of 52.3 cents. No dividend was declared.

In the first half of the year, gross profit was RMB 17.352 billion, a decrease of 3.5%; however, benefiting from the decline in raw milk prices, the gross profit margin increased by 1.4 percentage points to 41.7%. With the improvement in gross profit margin, operating profit reached RMB 3.538 billion, an increase of 13.4%, and the operating profit margin rose by 1.5 percentage points to 8.5%