On 30 March, Ausnutria Dairy Corporation Ltd. (Ausnutria, stock code: 1717.HK)
released its full-year 2015 financial report. Key figures are:
-
Sales: USD325.7 million (RMB2.1 billion),
up by 7% YoY
-
Gross profit: USD91.4 million (RMB590
million), up by 4% YoY
-
Net profit: USD7.8 million (RMB50.6
million), down by 43.9% YoY
Imported infant goat milk formula Kabrita: sales up by 78.4%
In 2015, Ausnutria achieved sales of USD83.6 million (RMB540 million) from
the Kabrita line (a brand imported from the Netherlands), up by 78.4% YoY.
Sales volumes of Kabrita witnessed a CAGR of 128.9% in 2011-2015. According to
China Customs, the import value of Kabrita made up 63% of the national infant
goat milk formula figure.
“We have already established affiliated companies in Russia, the US, Canada,
Europe and the Middle East, for the sales of Kabrita. In the future, we will
continue promoting this line in other countries and regions,” said Ausnutria in
its financial report.
In September 2015, Li Yimin, General Manager of Hyproca Nutrition Co., Ltd.
even stated, “Kabrita has now played a vital role in increasing sales for
Ausnutria. In 2016, we aim to achieve USD154.8 million (RMB1 billion). To date
Kabrita is mainly sold in mother and baby stores (about 90%), as well as in
premium key accounts. In future, our marketing strategy will be focused on the
promotion of infant goat milk formula.”
Liquid milk business to be developed
In 2015, Ausnutria achieved a growth of about 33.8% in sales of own-branded
base powder, to USD185.8 million (RMB1.2 billion). In particular its major 3
brands, Allnutria, Puredo and Hyproca 1897, recorded growth of 8.1%, 39.2%
and 16% respectively.
In 2014, Ausnutria launched the technological reconstruction of its 3 plants
located in the Netherlands, to ensure product supply and profits along the
whole supply chain. Such a huge project undoubtedly increased the company’s
costs.
In 2015, the company witnessed large declines in net profits – at the
time, trade sources commented that the reconstruction period took longer than
expected and that production volumes after the reconstruction were
inconsistent, which has led to severely short supplies and setbacks in the
company’s profits.
Notably, another Ausnutria plant constructed in the Netherlands in 2014 with a
total investment of USD47.8 million (RMB309 million) will be put into trial
operation at the end of 2016, which is expected to greatly improve production
capacity and quality, and to enhance the profitability further, according to
Ausnutria’s financial report.
In 2016, the company will continue focusing on the Chinese market, and will
also enter other developing Asian markets. Meanwhile, it will continue to build
its brand and will invest in building its upstream supply chain, to improve its
capability.
In addition, Ausnutria will develop a functional liquid milk business and will
form a team to run its nutrition business in China, so as to achieve product
diversification.
According to Ausnutria’s business plan, it will import nutritional products,
targeted at the Chinese market. Initially, the company has invested in the
liquid milk (55% stake) and the nutrition businesses (60% stake), with the rest
of the shares held by managing teams.
Ausnutria's Financial Performance, 2012-2015
Source: Ausnutria Dairy Corporation Ltd.
This article comes from Dairy Products China News 1604, CCM
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Tag: infant formula