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Mengniu 2025 annual results: Enhancing resilience, poised for growth
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Tuesday, 31 March, 2026, 14 : 00 PM [IST]
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Hong Kong
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China Mengniu Dairy Company Limited and its subsidiaries announced its annual results for 2025. Amid multiple challenges, including subdued domestic demand growth and significant structural adjustments across the industry, it pressed ahead with determination, steadfastly advancing its "One Core, Two Wings" strategy.
Through continued optimisation of its business structure and markedly enhanced resilience, the group delivered full-year revenue of RMB82,244.9 million and operating profit of RMB6,564.4 million.
The announcement highlighted that, through a series of refined management initiatives, it enhanced quality and efficiency, achieving a gross profit margin of 39.9%, operating cash flow of RMB8,750.5 million, and free cash flow of RMB6,297.8 million, each reaching a record high. Analysts noted that the company's fundamentals continue to improve and its core competitiveness has been comprehensively strengthened, providing solid support for capturing opportunities during the industry's cyclical recovery.
Maintaining Strategic Focus, Driving Synergistic Development under the "One Core, Two Wings" Strategy In 2025, it maintained strategic focus and fully advanced its "One Core, Two Wings" strategy, continuously optimising its category structure. On the "One Core" side, liquid milk segment had shown a steady sequential performance, stabilising and rebounding since the second half of 2025, while fresh milk, cheese, milk powder and domestic ice cream businesses all achieved double-digit growth for the full year and maintained a strong growth momentum. On the "Two Wings" side, innovative businesses made breakthrough in deep processing and functional nutrition, while international business delivered solid performance in both Southeast Asian and the Australia–New Zealand markets.
Mengniu's room-temperature segment carried out a systematic restructuring across product innovation, marketing communications, and channel management, launching products such as "Soft Milk" and functional milks enriched with prebiotics and vitamins. These initiatives continued to expand the consumer base and capture incremental market opportunities, further reinforcing the liquid milk foundation. The flagship brand, Milk Deluxe launched the premium organic "Shajin Tohoi" milk on its 20th anniversary, further consolidating its leadership in the high-end market. In the chilled segment, Mengniu actively captured the trend towards more diversified consumption scenarios, delivering continuous breakthroughs through product innovation and channel expansion. Profitability continued to improve, and the brand maintained the No.1 market share position for 21 consecutive years.
Mengniu's fresh milk segment delivered double-digit growth, further increasing its market share. The Shiny Meadow brand continued to strengthen its 4.0 core products and entered high-end fresh milk sub-segments with new offerings such as lactose-free dual-protein and A2ß-casein milk, achieving high double-digit growth. The ice cream business focused on its dual-brand strategy of "Suibian + Mood for Green", continuously optimising product portfolio and adapting to consumption scenarios adaptation, also achieving double-digit growth with steadily improving profitability. In the milk formula segment, Mengniu targeted functional niche markets and enhanced product strength through R&D-led innovation, delivering nearly double-digit growth for the full year, with accelerated second-half growth reaching high double-digit levels.
Notably, Mengniu's cheese segment recorded full-year growth exceeding 20%, demonstrating strong momentum. By further strengthening synergies with Milkground, Mengniu comprehensively empowered its supply chain, market, and channel resources, helping Milkground consolidate its absolute leadership position in the industry.
Building on the continued structural optimisation of its core businesses, Mengniu strategically developed its innovative business and overseas platforms, actively creating a "second growth curve" and accelerating its advancement toward "Greater Health" and international markets.
Mengniu accelerated industrialisation in the deep-processing sector, with products such as lactoferrin, micellar casein, and demineralised whey powder D90 successfully meeting national standards, while mascarpone cheese and natural mozzarella cheese were consecutively launched, breaking through technical bottlenecks and reducing reliance on imports. Mengniu's professional dairy products earned the trust of leading tea beverage, bakery, and restaurant chain brands, significantly increasing market penetration. The sports nutrition brand M-ACTION completed nearly RMB100 million in Series A funding, receiving recognition from both consumers and investors.
Gao Fei, chief executive officer of Mengniu, said, "In the first year of the 15th Five-Year Plan, the industry is showing a steady recovery and positive growth momentum. Mengniu will actively support the national "15th Five-Year Plan" strategy that prioritises health, steadfastly implement the "One Core, Two Wings" strategy, and accelerate its presence in nutritional segments including basic nutrition, functional nutrition, and medical nutrition. The Company will continue to create nutritional value for consumers through product excellence and contribute new and greater strength to advancing the revitalisation of the dairy industry and the Healthy China Initiative through its own high-quality development."
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