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Bright Dairy Room-temperature Business Drags down its Revenue

China Agriculture Report By CnAgri2018-08-09 14:31:25China Agriculture Report Print
The sales of Bright Dairy in Q1 2018 was down 5% YoY, net profit down 30% YoY.
A survey indicates its retail in Q2 was slightly better than in Q1. The low-temperature business grew steadily, but room-temperature business including MOMCHILOVTSI still witnessed slide of sales. The pressure on room-temperature business is big. BOABC does not expect to see sound revenue of Bright Dairy in first half year.
(1)Low-temperature business, all of its nine pasteurized milk plants passed the acceptance check of “quality milk engineering”; low-temperature products see a high barrier in core markets including East China, the company would foster its top-end new products.
(2) Room-temperature business, the company readjusted its MOMCHILOVTSI development strategy, including diversification of segmented varieties, targeting young consumers, enhancing channel penetration and exploration of new network points, for the sake of reversing the falling trend.
(3)Synlait, its sub company in New Zealand, is still in transition.
Powder business, Synlait has been successful in shifting from large-pack powder to tin infant formula. Its sales quantity of infant formula in the first half of 2018 should be 30% more than in the latter half of 2017.
Synlait raises its production capacity of lactoferrin. It plans to invest 17.94 million NZ$ to set up a second line for lactoferrin in Dunsandel.
Enlargement of product portfolio, it invests 125 million NZ$ for liquid dairy lines in NZ. The lines shall be put into operation in March 2019, and annual capacity 115,000 tons.
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