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This report (chinatimes.net.cn) reporter Fang Fengjiao reports from Shanghai
On March 25, Milkground released its financial report for the fourth quarter and the entire year of 2025. The company achieved an annual operating income of 5.632 billion yuan, a year-on-year increase of 16.29%; among them, the fourth quarter achieved an operating income of 1.676 billion yuan, a year-on-year increase of 34.13%, and a quarter-on-quarter increase of 20.57%, marking three consecutive quarters of revenue growth. The non-net profit also achieved synchronized growth.
In response, a relevant person in charge of Milkground told the reporter from the China Times that this is a strong verification of the initial effectiveness of its operational strategy upgrade and transformation, and this achievement cannot be separated from the deep empowerment and strategic synergy of its controlling shareholder MENGNIU DAIRY. Relying on MENGNIU's global milk source layout, supply chain advantages, and channel resources, Milkground has built a solid &#34;moat&#34; in cost control, market penetration, and product innovation. In the future, with further integration in research and development, branding, supply chain, and market channels, a greater &#34;1+1&gt;2&#34; effect will be released, providing continuous momentum for Milkground to sprint towards the 10 billion yuan target.
Against the backdrop of overall slowdown in the dairy industry and intensified competition, this financial report conveys a clear signal: Milkground is emerging from the adjustment period, and its strategic adjustments and operational improvements have begun to show results. However, whether growth can be sustained still faces multiple tests.
Chinese food industry analyst Zhu Danpeng is optimistic about Milkground's overall development. He analyzed to the reporter from the China Times that Milkground's brand effect, scale effect, fan effect, and market discourse power are all strengthening, coupled with the empowerment of the capital market, a new organizational structure and operators have been introduced, and a series of strategic and innovative upgraded products will be launched.
Products and Channels Provide Key Momentum
From the quarterly data, Milkground's growth trajectory is clear. From the first to the fourth quarter of 2025, revenue showed a trend of increasing quarter by quarter, with a particularly outstanding year-on-year growth rate of 34.13% in the fourth quarter.
Breaking down the growth drivers, product structure adjustment is one of the key factors. In recent years, Milkground has continuously promoted the &#34;cheese first brand&#34; strategy, consolidating its core category of children's cheese sticks while extending into adult cheese, family cheese, and catering industrial cheese across multiple scenarios. The financial report shows that the adult ready-to-eat cheese series and family baking cheese products have seen significant growth, becoming new contributors to revenue.
There have also been breakthroughs on the channel side. In 2025, the company consolidated traditional channels such as supermarkets and convenience stores while increasing its layout in emerging channels such as e-commerce, community group buying, and membership stores. The fourth quarter, as a traditional consumption peak season, combined with marketing nodes such as &#34;Double Eleven,&#34; achieved volume growth through online and offline linkage.
It can be said that Milkground delivered a very impressive report card in 2025. If we step out of a single annual time frame and review the financial data of Milkground over the past three years, we can more scientifically examine the appropriateness of this cheese company's new strategic path and the significant trends facing the future
In 2023, Milkground's revenue experienced its first year-on-year decline, dropping to 4.049 billion yuan. It was precisely that year when a series of external factors prompted this domestic cheese giant to deeply introspect and adjust its business strategy. In 2023, Milkground officially proposed a dual-driven strategy of TO C + TO B to promote transformation and upgrade, significantly broadening the multidimensional and multi-scenario consumption possibilities of cheese from children's snacks to adult leisure, family dining tables, and catering enterprises.
In 2024 and 2025, Milkground achieved double-digit growth once again. Last year's revenue scale even surpassed 5 billion yuan for the first time, reaching a new height of 5.632 billion yuan. It is worth noting that after breaking through 4 billion yuan in 2021, Milkground had been &#34;hovering&#34; below the 5 billion yuan revenue scale for a full 4 years. The year 2025 not only marks the conclusion of Milkground's first decade of development, but the strong financial data also seems to witness the robust operational resilience under the new strategic direction and the promising new growth space for the future. This year's achievements undoubtedly become a key year of significant importance in the development history of Milkground empowered by MENGNIU DAIRY.
A relevant person in charge of Milkground told the &#34;Huaxia Times&#34; reporter that in 2025, the company will adhere to the dual-driven strategy of products and channels, continuously innovate on the product side, and meticulously cultivate on the channel side, while enhancing operational efficiency through digital means, ultimately achieving quality growth.
However, it is important to note that while revenue is growing, the changes in the sales expense ratio are worth paying attention to. The competition in the cheese industry is becoming increasingly fierce, with new brands continuously entering the market, and concerns about price wars still linger. How to strike a balance between scale expansion and profit margins is a challenge that Milkground needs to continuously face.
Dual Challenges of Competition and Costs
The China Dairy Industry Association released the &#34;China Dairy Industry Progress 2030&#34; and &#34;New Pathways for Optimizing Dairy Product Structure and Expanding Consumption,&#34; listing cheese as a core development direction for deep processing and clearly promoting the large-scale production of domestically produced cheese. Relying on the national &#34;Student Milk&#34; program to steadily promote cheese pilot projects, enriching category supply, while strengthening whey co-production, whey protein recovery, and co-production process applications, optimizing fermentation strains, promoting the high-value utilization of cheese processing by-products such as whey powder and lactose, and improving the layout of the entire cheese industry chain.
The Chinese cheese market is still in its growth phase, but the growth rate has shifted from explosive growth to stable development. Compared to mature markets such as Europe, the United States, and Japan, there is indeed room for improvement in per capita cheese consumption in China, but consumer education and category penetration still require time.
From the competitive landscape, although Milkground occupies a leading position, competitors have not relaxed their pursuit. Dairy giants like Yili and MENGNIU continue to increase their investment in the cheese sector, while emerging brands are also seeking opportunities in niche areas. The competition for market share is shifting from channel distribution to a comprehensive competition of brand awareness, product innovation, and supply chain efficiency.
Fluctuations in raw material prices remain a source of cost pressure for cheese companies. In 2025, international dairy raw material prices fluctuated, impacting gross margins to some extent. The company has mitigated some pressure through supply chain optimization and capacity layout adjustments, but the ability to control costs remains a key variable affecting future profitability
Currently, Milkground has established production bases in core dairy source areas such as Northeast and East China, forming an industrial chain layout from raw materials to finished products. The digital factory construction promoted in 2025 will help improve production efficiency and quality stability. However, during the process of increasing industry concentration, the degree of capacity utilization and the release of scale effects will directly affect the company's cost competitiveness.
As the cheese sector transitions from a blue ocean to a red ocean, competition among enterprises is shifting from single-category expansion to a competition of comprehensive capabilities. Whether product innovation can continue to lead demand, whether channel deepening can translate into repurchases, and whether brand investment can create barriers—these factors will determine whether Milkground can maintain its advantage in the upcoming competition.
A relevant person in charge of Milkground told this reporter that in 2026, the company will continue to focus on its core cheese business, guided by consumer demand, continuously innovate products, deepen channels, strengthen the brand, and actively pay attention to industry consolidation opportunities to further consolidate its leading position in the industry.
The new president, Kuai Yulong, believes that Milkground's strategic direction is very clear, and the implementation path is efficient and stable. Looking to the future, it needs to &#34;look outward and seek inward.&#34; For the entire organizational system, it is necessary to further enhance professional capabilities and create a flexible and robust management model. First, it must prepare in terms of organizational capabilities, cognitive levels, and system construction to achieve the goal of becoming a hundred billion-level enterprise.
The 2025 financial report shows positive signals, and the growth trend over three consecutive quarters also provides confidence support for the market. However, against the backdrop of intensified stock competition, ongoing cost pressures, and the need for time for category penetration, whether Milkground can convert short-term growth into long-term momentum remains to be further observed

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Milkground released its 2025 financial report, with annual revenue of 5.632 billion yuan, a year-on-year increase of 16.29%. Revenue in the fourth quarter was 1.676 billion yuan, a year-on-year increase of 34.13%. The company stated that the growth in performance is attributed to the support and strategic synergy from its controlling shareholder, MENGNIU DAIRY Group, and it will continue to promote product innovation and market expansion in the future. Analyst Zhu Danpeng holds an optimistic view on the company's prospects, believing that brand effect and market influence are strengthening. Despite facing intensified industry competition, Milkground's strategic adjustments have begun to show results

腾讯新闻 - 财经

ChinaAMC CSI Food & Beverage Sub-Industry ETF

Tianhong CSI Food and Beverage ETF

CSI Shanghai SOEs ETF

MENGNIU DAIRY

Hwabao WP CSI Food & Beverage Sub-Industry ETF

China Merchants Guozheng Food and Beverage ETF

Milkground

Mengniu Dairy

Revenue and net profit increased against the trend, Milkground is emerging from the adjustment period