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Ausnutria’s Revenue Rebounds, Goat Milk Powder Sales Soar inOverseas Markets

BEIJING, Aug. 28, 2024 – Ausnutria Dairy (1717.HK) has announced a strong performance in the first half of 2024, with revenue reaching 3.68 billion yuan, representing a 4.8% year-on-year increase. The company’s own-brand goat milk powder sales, particularly in overseas markets, have been a key driver of growth, with revenue surging by 50.7% year-on-year.

The company’s half-year report highlights the successful turnaroundof its business after two years of adjustments and optimization. While profit attributable to equity holders of the company decreased by 21.2% to 1.45 billion yuan, gross profit rose by 8.4% to1.59 billion yuan, with gross margin increasing by 1.4 percentage points.

Ausnutria’s goat milk powder business, under the brand Kabrita, generated 1.81 billion yuan in revenue, representing a 20.2% year-on-year increase and accounting for49.1% of total revenue. The company attributes this growth to a multi-pronged strategy in the Chinese market, including product portfolio optimization, streamlining of inventory, and channel value chain optimization, leading to a steady increase in terminal prices.

However, the company’s own-brand milk powder businessfaced challenges in the first half, with revenue declining by 10.4% to 1.13 billion yuan, accounting for 30.7% of total revenue. This decline is attributed to the overall contraction of the infant formula market in China, driven by declining birth rates and reduced demand. Additionally, the late approval of some new national standard products and the transition from old to new national standards impacted sales performance.

Despite the challenges in the domestic milk powder market, Ausnutria’s international expansion has been a major success story. Kabrita’s overseas sales reached 2.92 billion yuan, aremarkable 50.7% year-on-year increase, representing 16.1% of total own-brand goat milk powder revenue.

The company’s strong performance in overseas markets is driven by several factors:

  • Entry into new markets: Kabrita infant formula goat milk powder officially launchedin the US and Canada in the first half of 2024.
  • Growing market penetration: The Middle East, a key market for Ausnutria, continues to see strong sales growth as consumer acceptance and market penetration of goat milk powder increase.
  • Rapid growth in CIS countries: Ausnutria has witnessed rapid growth in the Commonwealth of Independent States (CIS) region.

Ausnutria is actively pursuing further international expansion, with India identified as a key target market due to its large newborn population. The company aims to secure a leading position in this market.

To strengthen its goat milk supply chain and expandits product portfolio, Ausnutria has completed the acquisition of the remaining 50% stake in the Netherlands-based Amalthea Group. This acquisition will enable Ausnutria to achieve self-sufficiency in key goat milk powder raw materials, such as whey protein, and add cheese products to its product portfolio.

Lookingahead, Ausnutria plans to focus on its own-brand goat milk powder and high-end milk powder businesses, while also investing in brand resources. The company will leverage industry trends to optimize its product portfolio and build a comprehensive operating system for its nutrition products business. Ausnutria is also committed to accelerating its overseasexpansion of its own-brand goat milk powder business, focusing on key markets to gain market share and widen the gap with competitors.

Overall, Ausnutria’s strong performance in the first half of 2024 demonstrates its resilience and adaptability in a challenging market environment. The company’s focus on itsown-brand goat milk powder business, coupled with its international expansion strategy, positions it well for continued growth in the future.


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