Modern Dairy’s profitability in 20193.US $ 500 million, showing synergistic benefits with Mengniu

Modern Dairy’s profitability in 20193.US $ 500 million, showing synergistic benefits with Mengniu

Modern Dairy’s profitability in 20193.US $ 500 million, showing synergistic benefits with Mengniu
On the evening of March 23, “China’s largest dairy farming company” Modern Dairy announced its 2019 annual results, and its sales revenue was 55.1.4 billion US dollars, an annual increase of 11.2%; net profit is 3.500 million US dollars, an annual increase of 8.5.6 billion yuan, realizing a turnaround.Thanks to the synergy with the major shareholder Mengniu, Hyundai Dairy’s downstream liquid milk brand has achieved a profit of 35 million yuan, and special milk for Ruixing coffee production.Cost reduction and efficiency increase profitability In 2019, Hyundai Dairy’s total raw milk production reached 139 inches, an annual increase of 8.6%; the annual yield of adult dairy cattle reaches 10%.6 tons, an increase of 0 from last year.5 tons, the output and unit output have reached the highest level in history.Benefited from the improvement of operating indicators, while the performance of modern animal husbandry increased, the net cash generated from operating activities increased.7% to 20.4.9 billion yuan.Modern animal husbandry said that the company’s profitability improvement shows the advantages of large-scale pasture.In terms of cost control, through refined planting, optimized feed structure and increased silage usage, the cash cost of kilograms of raw milk was increased and replaced.32 yuan, the cost of kilograms of raw milk feed replaces 1.77 yuan, reaching a record low.At the same time, the company is committed to optimizing its procurement strategy, locking orders at low prices in accordance with the rules of bulk feed prices, and using direct procurement to save costs.In 2020, Modern Dairy said it will continue to reduce costs and increase efficiency, improve operational efficiency, promote profitability, and supplement professional teams to manage non-core assets and increase asset utilization.In September 2018, the Air Force signed a letter of intent on cooperation framework with CITIC Environment to integrate and sell the company’s energy assets.In December 2019, Hyundai Animal Husbandry and CITIC Environment affiliated funds established a joint venture company and sold the merged Bengbu, Feidong Ranch Energy Asset Company equity to the joint venture company.Mengniu’s brand milk sales benefited from the change in sales model and the synergy with major shareholder Mengniu. In 2019, Hyundai Dairy’s downstream liquid milk brand contributed approximately 35 million yuan in profits to Hyundai Dairy, an increase of nearly 40%.Modern animal husbandry said that the product layout has transitioned to Mengniu ‘s mature market strategy. The sales of main products are stable. The newly listed basic white milk, high-calcium milk and walnut milk have also grown rapidly.In addition to the traditional sinking channels, the first-tier cities adopt direct sales and supermarkets, while producing special milk for Ruixing Coffee.Modern animal husbandry said that the organic integration of upstream and downstream is an inevitable direction for the future development of China’s dairy industry.Affected by the impact of imported bulk powder, low raw milk prices, and the interruption of the downstream liquid milk business, Hyundai Dairy has continued to lose money from 2016 to 2018.Since Mengniu increased its shareholding in Hyundai Dairy and became a strategic shareholder in 2017, the synergy between the two parties in raw milk sales, branded milk sales, financial financing, and feed procurement has continued to deepen. Hyundai Dairy can concentrate its earnings on upstream breeding sites.In July 2019, Hyundai Dairy Dating New Hope Dairy was the second largest shareholder, and the two sides strengthened cooperation in the raw milk business.Regarding the outbreak of New Coronary Pneumonia, Modern Dairy said that raw milk production and sales were normal during the outbreak, “The company will continue to put production safety first, strengthen disinfection of production areas, pay attention to employee health, and strictly prevent epidemic.”Sauna, night net Guo Tie editor Li Yan proofread Wang Xin