Yili Group released its financial results for the first three quarters of 2021. During the period, Yili achieved a total operating revenue of RMB 85.007 billion and a net profit of RMB 7.967 billion, representing a year-on-year increase of 15.23% and 31.82%, respectively. Both indicators reached a record high, and the profit growth of more than 30% far outstripped expectations.
Yili’s net profit in the first three quarters has exceeded that of last year, signaling a new outlook for the company’s growth prospects. The performance also indicated that Yili is now expected to become the first dairy company in Asia to exceed RMB 100 billion in revenue.
As Pan Gang, the Chairman of Yili Group, said, “We will invest more in the tracks focused on new consumption trends and aspire to do our best in each of them. We will also accelerate our digital transformation to boost the overall operational efficiency of the Group, in a bid to achieve our strategic objectives.”
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Core products maintain stable growth, while new growth drivers emerge
Yili has continued to stand out as the pacesetter of the market in liquid milk, ice cream, and other products. Yili Satine Organic Milk, AMBPOMIAL, and Changqing have clinched first place in their respective market segments.
New product sales have risen strongly, with brand potential beginning to emerge as the new force underpinning Yili’s performance growth. High-growth categories, including cheese, mineral water, low-temperature milk, and milk formula, have all sustained rapid growth.
Yili’s Xinhuo adult milk powder has led the market segment in sales volume, while Jinlingguan has been the infant formula brand which has seen the most rapid growth in China’s market. During the first three quarters of 2021, Yili’s infant formula category has reached a growth rate of more than 30% year-on-year.
Yili has now covered major consumption scenarios of cheese. The first three quarters saw a year-on-year increase of 180% in the total retail sales of Yili’s cheese business.
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Strengthening infant formula leadership and entering the nutrition product market
Yili has proactively enriched categories and its strategic cooperation since the beginning of 2021.
On October 27, 2021, Yili joined hands with goat milk leader Ausnutria Dairy and became the latter’s largest shareholder. Ausnutria also features a comprehensive layout in nutrition products and has been licensed with China’s quality mark for healthcare products. This will significantly facilitate Yili’s future expansion in the health food market.
Digitalization empowers the industry to improve operational efficiency
Yili has established a dedicated team working in digitalization since 2019 and has developed its digitalization-oriented transformation strategy for the next decade, laying out a roadmap for marketing, products and supply chains.
“Digital transformation should be accelerated to ensure our consumer-oriented practice in terms of brand-building and product innovation. That is the major task for Yili in 2021,” according to Pan Gang.
