蒙牛乳业(02319) - 2024 - 中期业绩

Financial Performance - Revenue for the first half of 2024 was RMB 44.6705 billion, a decrease of 12.6% year-on-year[2] - Gross profit margin increased by 1.9 percentage points to 40.3%[2] - Operating profit was RMB 3.1193 billion, with an operating profit margin of 7.0%, up 0.6 percentage points[2] - Profit attributable to equity shareholders was RMB 2.4458 billion[2] - Total revenue for H1 2024 was RMB 44,670,500 thousand, down 12.6% compared to RMB 51,118,523 thousand in H1 2023[12][13] - Revenue for the first half of 2024 decreased by 12.6% to RMB 44.6705 billion compared to RMB 51.1185 billion in the same period last year[53] - Gross profit margin increased by 1.9 percentage points to 40.3% due to lower raw milk prices, despite a decline in gross profit to RMB 17.9847 billion[54] - Operating profit margin improved by 0.6 percentage points to 7.0%, with operating profit declining by 4.8% to RMB 3.1193 billion[55] - EBITDA decreased by 7.5% to RMB 4.7908 billion, but EBITDA margin increased by 0.6 percentage points to 10.7%[56] - Net profit attributable to equity shareholders fell by 19.0% to RMB 2.4458 billion, with basic earnings per share dropping to RMB 0.623[56] - Capital expenditure decreased by 10.3% to RMB 1.6929 billion, primarily allocated to new and upgraded production facilities[58] - Net cash inflow from operating activities decreased by 44.4% to RMB 1.9199 billion, mainly due to lower net profit and increased raw material inventory[59] - Total interest-bearing borrowings increased to RMB 41.5623 billion, with a debt-to-equity ratio of 81.3%[60] Segment Performance - The company operates in five reportable segments: liquid milk, ice cream, milk powder, cheese, and other dairy-related businesses[11] - Segment performance is evaluated based on adjusted pre-tax profit/loss, excluding interest income, non-lease financing costs, and other items[11] - Segment assets and liabilities exclude investments in associates and other non-segment corporate assets and liabilities[11] - Liquid milk business revenue decreased to RMB 36,261,544 thousand in H1 2024 from RMB 41,640,229 thousand in H1 2023, a decline of 12.9%[12][13] - Ice cream business revenue dropped to RMB 3,371,448 thousand in H1 2024 from RMB 4,308,698 thousand in H1 2023, a decrease of 21.7%[12][13] - Segment profit for liquid milk business was RMB 2,551,326 thousand in H1 2024, down 9.5% from RMB 2,818,627 thousand in H1 2023[12][13] - Ice cream business segment profit declined 46.3% to RMB 384,750 thousand in H1 2024 from RMB 716,223 thousand in H1 2023[12][13] - Powdered milk business revenue decreased 13.7% to RMB 1,635,262 thousand in H1 2024 from RMB 1,894,213 thousand in H1 2023[12][13] - Cheese business revenue declined 6.3% to RMB 2,114,319 thousand in H1 2024 from RMB 2,256,051 thousand in H1 2023[12][13] - Liquid milk revenue accounted for 81.2% of total revenue, amounting to RMB 36.2615 billion, a decline from RMB 41.6402 billion in the previous year[60] - Revenue from ice cream products was RMB 3.3714 billion, accounting for 7.5% of Mengniu's total revenue (2023: RMB 4.3087 billion, 8.4%)[66] - Revenue from milk powder products was RMB 1.6353 billion, accounting for 3.7% of Mengniu's total revenue (2023: RMB 1.8942 billion, 3.7%)[67] - Revenue from cheese products was RMB 2.1143 billion, accounting for 4.7% of Mengniu's total revenue (2023: RMB 2.2561 billion, 4.4%)[68] Balance Sheet and Equity - Total assets as of June 30, 2024, were RMB 79.5696 billion, a decrease from RMB 81.0917 billion at the end of 2023[6] - Total liabilities as of June 30, 2024, were RMB 65.6047 billion, compared to RMB 64.5682 billion at the end of 2023[7] - Net current liabilities were RMB 512.871 million, compared to net current assets of RMB 1.5342 billion at the end of 2023[7] - Net assets increased to RMB 51.1186 billion from RMB 50.6517 billion at the end of 2023[7] - Total equity increased to RMB 51,118,603 thousand as of June 30, 2024, compared to RMB 50,651,711 thousand as of December 31, 2023[8] - Retained earnings rose to RMB 34,586,416 thousand as of June 30, 2024, up from RMB 34,064,964 thousand as of December 31, 2023[8] - Non-controlling interests increased to RMB 6,390,550 thousand as of June 30, 2024, compared to RMB 6,331,752 thousand as of December 31, 2023[8] - The company's current liabilities exceeded current assets by RMB 512,871 thousand as of June 30, 2024[9] - Total assets increased to RMB 116,723,294 thousand as of June 30, 2024, up 1.3% from RMB 115,219,951 thousand as of December 31, 2023[12][13] Shareholder Returns and Dividends - The company plans to repurchase up to HKD 2 billion worth of shares in the next 12 months[2] - The company did not declare an interim dividend for the first half of 2024, consistent with the previous year's policy[26] - Final dividend for the previous fiscal year amounted to RMB 1,924.4 million, representing RMB 0.489 per share, a 21.2% increase from RMB 0.402 per share in 2023[27] - The weighted average number of ordinary shares used for calculating basic earnings per share was 3,928,960 thousand shares in 2024, compared to 3,948,977 thousand shares in 2023[29] - The weighted average number of ordinary shares used for calculating diluted earnings per share was 3,933,283 thousand shares in 2024, compared to 3,963,703 thousand shares in 2023[31] - The company plans to repurchase up to HK$2 billion worth of shares within the next 12 months to enhance shareholder returns[75] Sustainability and Environmental Initiatives - The company continues to implement its "GREEN" strategy and "Dual Carbon" goals, focusing on sustainable development initiatives[2] - The company has established a "1+N" sustainability reporting system and released multiple reports including the "2023 Sustainability Report" and "Natural-related Financial Disclosure Report," making it the first in China's dairy industry to follow the TNFD framework[71] - The company has set quantitative goals for green packaging transformation, including reducing fossil-based virgin plastics and increasing the use of recycled and degradable materials[71] - The company has partnered with AiHuiShou to launch a "Dairy Packaging Plastic Reduction and Renewal Plan," aiming to reduce packaging waste and promote green consumption[71] - The company has become a member of RSPO and initiated sustainable palm oil procurement, while also delivering China's first "zero-deforestation" soybeans[71] Product Innovation and Market Expansion - The company launched new products such as 0-lactose milk and various flavored milk teas to cater to diverse consumer needs[36] - Mengniu's low-temperature dairy business outperformed the industry with a 20-year consecutive market share leadership, achieving continuous improvement in product structure and profitability[38] - Mengniu's low-temperature yogurt upgraded to 100% raw milk formula, with strong growth in the 0-sugar and fruit-flavored segments, driving high sales growth in 2024[38] - Mengniu's fresh milk business achieved double-digit growth for the premium brand "Daily Fresh Language," with innovative products like double-protein milk gaining market acclaim[39] - Mengniu's fresh milk business led in online and offline channels, securing the top market share in platform and fresh e-commerce, and launched the industry's first self-operated Douyin live-streaming room[39] - Mengniu's infant formula business turned profitable in H1 2024, focusing on functional nutrition and operational efficiency, with the Ruiburen brand enhancing R&D and sales channels[40] - Ruiburen released the world's first MLCT clinical results, a patented innovation in infant formula, strengthening its competitive edge[41] - Mengniu's ice cream business strengthened brand and product innovation, with the "Sui Bian" brand upgrading its product line and launching premium series to meet young consumer demands[44] - Mengniu's overseas ice cream brand, Aice, achieved strong sales growth and profitability, maintaining the top market share in Indonesia and second in the Philippines[44] - Mengniu's cheese business is positioned for long-term growth as Chinese consumers shift from "drinking milk" to "eating milk," driving the industry's transformation from rough to refined processing[45] - Miao Kelan achieved a market share of over 30% in the cheese market, maintaining its leading position[46] - Miao Kelan launched new adult-ready-to-eat nutrition cheese products in May 2024, expanding its product matrix[46] - Miao Kelan completed the 100% cash acquisition of Inner Mongolia Mengniu Cheese Co., Ltd. in June 2024 to consolidate its leadership in the cheese category[46] - Mengniu's Ruibuen led the release of the first domestic group standard for detecting 7 human milk oligosaccharides (HMOs) in infant formula and modified milk powder in March 2024[47] - Hongmo Biotechnology, a subsidiary of Mengniu, completed a nearly 100 million yuan Pre-A round of financing in May 2024[47] - Mengniu's M-Science brand became the official sports nutrition sponsor for the Chinese Triathlon National Team and major marathons[47] - M-Science launched the Fast-Endura™ energy gel series and Fast-hydro technology electrolyte products in early 2024[48] - Zhenguoli brand launched new milk tea series products targeting young consumers, featuring "zero milk powder, zero non-dairy creamer, zero trans fat"[63] - Mengniu upgraded its low-temperature yogurt products to 100% raw milk formula and expanded into the 0-sugar and fruit particle segments[64] - YouyiC low-temperature probiotic drink maintained its No.1 brand power in the industry for three consecutive years[65] - Daily Fresh brand launched innovative Double Protein Milk product, adding 6 almonds per 350mL cup[66] - Ruiburen infant formula upgraded its core product to A2 β-casein milk source in 2024[67] - Miaokelando expanded its product matrix with new adult snack cheese products and launched industry-first cheese innovations for B2B catering[68] Operational and Strategic Initiatives - The company strengthened its RTM channel strategy, enhancing dealer empowerment and online penetration[36] - The company expanded its B2B market, collaborating with brands like Yum China and Mixue Bingcheng in the foodservice sector[37] - The company provided nearly 730 million yuan in financial support to upstream partners in the first half of 2024[51] - Mengniu's "World Quality" activities attracted over 2,000 consumers to visit more than 60 factories during the 315 special event[50] - The company is focusing on R&D innovation, brand building, digital transformation, and channel optimization to drive high-quality development[73] - The company aims to lead the dairy industry into a new phase of "high-tech, high-efficiency, and high-quality" development[74] Governance and Compliance - The company adopted revised International Financial Reporting Standards (IFRS) during the period, including amendments to IAS 1 and IFRS 16[10] - The company's audit committee reviewed unaudited interim financial information for the six months ending June 30, 2024, ensuring compliance with governance standards[79] - The company's interim financial information was reviewed by KPMG, with an unmodified conclusion report included in the interim report[80] - The Board of Directors expressed gratitude to shareholders and the community for their consistent support, and acknowledged the hard work and loyalty of all employees[83] Employee and Workforce - As of June 30, 2024, the company employs over 43,000 staff across mainland China, Hong Kong, Oceania, and Southeast Asia[72] Cost and Expenses - Cost of sales decreased to RMB 26,664.1 million in 2024, down 15.3% from RMB 31,476.4 million in 2023[19] - Employee benefit expenses, including executive compensation, totaled RMB 4,204.2 million, a 5.0% decrease from RMB 4,424.1 million in 2023[19] - Current income tax expense was RMB 663.0 million, slightly lower than RMB 673.4 million in 2023[22] - Sales and distribution expenses decreased by 8.8% to RMB 12.6805 billion, accounting for 28.4% of revenue, up from 27.2% in the previous year[55] Inventory and Write-downs - Inventory write-downs surged to RMB 346.1 million in 2024, a significant increase from RMB 22.8 million in 2023[18] Government Subsidies - Government subsidies increased to RMB 285.0 million in 2024, up 9.9% from RMB 259.3 million in 2023[17] Accounts Receivable and Payable - Accounts receivable and notes, net of loss provisions, amounted to RMB 3,437,856 thousand as of June 30, 2024, a decrease from RMB 3,668,604 thousand as of December 31, 2023[33] - Accounts payable and notes totaled RMB 9,166,225 thousand as of June 30, 2024, down from RMB 9,499,441 thousand as of December 31, 2023[34] Online and Retail Channels - The company's online membership exceeded 82 million, with a significant increase in new retail membership[36] Overseas and Domestic Revenue - Overseas revenue accounted for 5.3% of total revenue in H1 2024, reaching RMB 2,351,871 thousand[15] - Mainland China revenue was RMB 42,318,629 thousand in H1 2024, representing 94.7% of total revenue[15] - Revenue from overseas markets accounted for RMB 2,121.3 million, representing 4.1% of total revenue, with ice cream contributing RMB 968.1 million (45.6% of overseas revenue)[16] Production Capacity - Mengniu has 45 production bases in China and 6 overseas, with a total annual production capacity of 13.9 million tons (December 2023: 14.04 million tons)[69]