Mengniu's 2025 revenue reaches 82.24 billion yuan, with operating cash flow hitting a record high. President Gao Fei: Break out of the involution, evolve into a provider of nutritional health solutions.

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On March 26, Mengniu Dairy held its 2025 full-year performance release conference at the Four Seasons Hotel Hong Kong, 2nd Floor, Financial Street, Central. Mengniu President and Executive Director Gao Fei, along with CFO Shen Xinwen, Vice Presidents Chen Yi Yi and Li Pengcheng, and Board Secretary Guo Weichang attended the event. They reviewed the company’s financial and business performance in 2025, announced future development strategies, and investors, analysts, and media from around the world participated.

At the conference, Gao Fei first introduced Mengniu’s overall operational results for 2025. Facing macroeconomic and industry cyclical challenges, Mengniu坚持 long-termism, creating value through cycles, delivering a resilient business performance. Data shows the company achieved total sales revenue of 82.24 billion yuan, roughly in line with expectations; thanks to falling raw milk prices and lean operations, gross profit margin hit a record high of 39.9%, up 0.3 percentage points from 2024. Operating profit for the year reached 6.56 billion yuan, with an operating margin stable at 8%, significantly higher than previous years. Excluding non-operating impairments and idle land asset impairments of Shengmu, adjusted net profit attributable to the parent was 3.96 billion yuan, with equity shareholders’ profit soaring 1378.9% year-over-year to 1.545 billion yuan.

Cost control and operational efficiency improvements became highlights of the performance. In 2025, Mengniu continued to refine expense management, with sales expenses down 6.5% year-over-year to 21.59 billion yuan; despite the impact of revenue decline causing operating leverage effects, the sales expense ratio and administrative expense ratio slightly increased, but inventory turnover days and accounts receivable turnover days improved year-over-year. Thanks to steady operations, annual operating cash flow reached a record high, with free cash flow hitting 6.3 billion yuan, also a historic best. Capital expenditure was further controlled at 2.45 billion yuan, leaving ample room for long-term growth.

In shareholder returns, Mengniu announced a three-year shareholder return plan for 2025-2027, with steady annual dividend increases and maintaining the 2024-2025 buyback pace, combining dividends and buybacks to reward shareholders. The dividend per share for 2025 was set at 0.520 yuan, a steady increase from 0.509 yuan in 2024, totaling approximately 2.017 billion yuan in dividends.

Regarding business segments, Mengniu’s “Strong One, Two Wings Flying Together” strategy has been effective, with continued optimization and upgrading of product categories. Segments such as fresh milk, infant formula, and adult formula all achieved double-digit growth, cheese business grew over 20%, further expanding market leadership.

Specifically, ambient milk accelerated product restructuring, launching lactose-free soft milk series to address the milk-drinking needs of 660 million lactose-intolerant people; Telunsu celebrated its 20th anniversary by launching premium product Sha Jin Tao Hai, deepening the desert organic full-industry chain value moat. The chilled dairy segment outperformed the industry against the trend, maintaining the No.1 market share for 21 consecutive years. Guanyiliu saw exponential growth in the second half, winning the Sam’s Club sales champion title again, and the new Super Vitality Can launched in early 2026 broke first-day sales records.

In fresh milk, Daily Fresh achieved high double-digit growth, sugar-free double-protein milk further expanded consumer base, quickly penetrating markets in Hong Kong and Macau after listing, gaining local consumer recognition; domestic ice cream focused on “随变” and “Green Mood” dual brands, achieving double-digit growth and improved profitability. Milk powder performed strongly, with Ruipu’en and Bellamy both growing over 20%, YouRui ranked first online in Q4, and Bellamy’s sales in Vietnam doubled, with international expansion showing notable results. Additionally, Mengniu strengthened collaboration with Miao Ke Lan Duo, driving dual growth in cheese B2B and B2C, consolidating industry leadership.

As part of the “Two Wings” of innovation and internationalization, 2025 saw new breakthroughs. The innovation segment increased R&D investment, with products like lactoferrin and enzyme casein reaching international standards. Mascarpone and original mozzarella successfully launched, breaking import dependence; Marsen sports nutrition products expanded, completing nearly 100 million yuan in Series A funding, with market recognition continuing to grow. The international segment focused on Southeast Asia and Oceania markets, with Bellamy’s sales in Vietnam doubling, and plans to further expand into Indonesia and the Philippines; Burra brand strengthened product development, collaborating with domestic cheese and deep-processing businesses to expand globally.

In ESG, Mengniu continued to implement the GREEN strategy, establishing Scope 3 carbon emission accounting models within the “dual carbon” initiative, solidifying full-chain carbon management. The company has been a constituent of the Hang Seng Sustainable Development Enterprise Index for five consecutive years, with MSCI ESG ratings maintained at AA. As the only comprehensive dairy enterprise in China included in the S&P Global Sustainability Yearbook, it previously ranked on the 2025 Fortune China ESG Influence List, the only Chinese dairy company on the list, with its sustainable development performance internationally recognized.

Looking ahead to 2026, Gao Fei stated that the dairy industry will benefit from both policy and market support. The No. 1 Central Document explicitly promotes dairy consumption, and the Ministry of Agriculture calls for “Nationwide Milk Drinking.” Currently, China’s per capita milk intake is only one-third of the global level, indicating huge growth potential. Mengniu will focus on brand leadership, R&D innovation, digital transformation, and channel upgrading, accelerating its evolution from a traditional dairy manufacturer to a comprehensive nutritional health solutions provider.

In product innovation, Mengniu will focus on three main tracks: basic nutrition, functional nutrition, and medical nutrition. Its self-developed probiotic LC-19 for sugar control has already launched successfully, and a leading high-protein functional nutrition product is upcoming; in channels, the company will upgrade from deep distribution to value-focused cultivation, strengthening presence in member stores, snack retail, and instant retail, speeding up market penetration. In marketing, leveraging the 2026 Olympics and World Cup, Mengniu aims to continue the strong start of Q1, integrating product effectiveness with brand impact.

Gao Fei emphasized that 2026 marks the beginning of the “14th Five-Year Plan,” and Mengniu will adhere to long-termism, creating consumer health value across the entire lifecycle through product value, building a high-quality industry chain ecosystem through innovation, rewarding investors with operational value, and safeguarding human and planetary health through industry value.