Ausnutria's 2025 revenue is 7.488 billion, with overseas operations becoming the core engine

Ask AI · How can Ausnut overseas business achieve continuous high growth for three consecutive years?

Blue Whale News March 30 (Reporter Zhu Xinyue) In 2025, the dairy products industry is facing multiple challenges. The pace of market consumption recovery is not as expected; the ongoing intensification of supply-demand contradictions is putting pressure on the industry’s overall growth. Against this backdrop, Ausnut Dairy Industry (1717.HK) has delivered a performance report with many highlights.

According to the financial report, in 2025 Ausnut achieved revenue of about RMB 7.488 billion, up 1.2%; it generated EBITDA (earnings before interest, taxes, depreciation, and amortization) of about RMB 518 million; after excluding the impact of one-off non-recurring items, core EBITDA was about RMB 616 million.

Regarding its performance growth, Ausnut stated in its financial report that domestic cow-and-goat business serves as the solid base, continuously playing a core role in stabilizing the overall business and maintaining its foundational position. The two second growth-curve businesses—nutrition products and international business—are gradually moving onto a development fast track by leveraging a gradually maturing market layout and product system, and are becoming the company’s core growth engine. Meanwhile, its innovative business of sheep-based raw materials and sheep cheese, centered on deep processing of sheep milk, targets niche markets and opens up entirely new value growth space for the company.

A dairy industry expert Song Liang further pointed out to a reporter from Blue Whale News that Ausnut maintained a growth trend overall in 2025, and its main growth drivers come from overseas markets. From the perspective of overseas market development, after the pandemic, the U.S. infant formula market has shown a thriving development trend. In recent years, it has basically maintained annual growth of 15%-20%. This growth mainly comes from two factors: first, a rise in the birth rate; second, increases in product prices. Among them, the contribution of price increases to overall growth exceeds 70%. After 2023, the U.S. FDA relaxed the market access requirements for infant formula made outside the country. Many Chinese dairy companies (including Ausnut) seized this opportunity to enter the U.S. market and achieved solid returns.

Looking at the details, Ausnut’s own infant formula business generated total revenue of about RMB 5.321 billion. Among them, the sheep milk formula brand Kabrita, a pillar brand of the company, recorded sales revenue of about RMB 3.5 billion in 2025, accounting for 47% of the company’s total revenue. Of this, domestic market sales were RMB 2.579 billion, down 15% year over year. In response, Ausnut explained that it was due to intense competition in the domestic industry and the impact of implementing in-can code product upgrades.

Overseas markets became the main engine of growth for Kabrita. In 2025, Kabrita’s overseas sales were RMB 974 million, up 50.7%. This is also the fact that Kabrita’s overseas market composite growth rate has exceeded 50% for three consecutive years.

Kabrita’s rapid growth overseas cannot be separated from the drive of core regions. Among them, the Middle East market is Ausnut’s largest overseas sales market. In 2025, revenue there increased 65.5% year over year, contributing 45.7% of total overseas revenue. Ausnut said that the growth in this region mainly benefited from the full-scale push by mature markets such as Saudi Arabia, the United Arab Emirates, Qatar, and Kuwait. The company strengthens promotion through medical professional channels, continuously improving local medical recognition of its sheep milk formula products, and solidifying its competitive advantage in the market.

In addition, revenue in the CIS market increased 40.1% year over year, accounting for 23.9% of total overseas revenue. The market has already achieved full-category coverage of Kabrita, with products including infant formula, grains, fruit purées, biscuits, and more, fully meeting local consumers’ diverse needs.

For Ausnut Group’s own-brand formula cow’s milk powder segment, revenue in 2025 was RMB 1.767 billion, down 16.1% year over year. Ausnut said that during the year the company advanced an upgrade to its in-can code refined operations strategy. Related businesses saw short-term adjustments, which in turn led to phased fluctuations in sales.

In addition, as a second growth-curve business that Ausnut has been continuously cultivating, the nutrition products business achieved steady growth in 2025, with revenue up 5.2% year over year. The announcement shows that the growth of this segment mainly benefited from the continuous innovation of its star strains and core products, the precise implementation of channel strategies, and the ongoing release of brand-market effects.

Apart from steady progress on the business front, Ausnut in 2025 also managed internal operations and cost control. The company’s allowance for inventory impairment decreased by nearly 1% year over year. The overall asset turnover ratio continued to improve, and the number of days of inventory turnover fell by 16 days compared with the prior year. Meanwhile, due to the continued push for more refined expense control, the overall expense ratio was optimized and decreased by 1.4% year over year. Among them, the marketing expense ratio declined by 2.4% year over year. Operational efficiency and profitability quality continued to improve.

Song Liang believes that, from the standpoint of main business development, over the past two years, the domestic sheep milk formula market in China has shown an overall downward trend. Against this backdrop, Ausnut’s ability to maintain steady development in its domestic sheep milk formula business is already quite remarkable. In addition, although Ausnut’s nutrition products business is currently still small in scale, it has consistently maintained a momentum of sustained growth over the past two years, making a positive contribution to the company’s overall performance growth. Second, Ausnut’s performance growth in 2025 mainly relies on the momentum from international business. Therefore, under the current industry environment, vigorously developing the adult public medical and elder-care business and fully expanding the international market is the必经之路 for Ausnut to achieve long-term development.