According to the company’s CEO, Gao Fei, the Chinese dairy industry continues to face challenges from shifting consumer demand and changing retail channels. However, Mengniu’s strategic efforts to optimize its product mix are starting to pay off. Several business segments delivered strong revenue growth, most notably its fresh milk segment, which achieved double-digit growth and gained notable market share. The milk formula business also saw a substantial increase, rising to 1,675.6 million yuan.

The improved profitability translated to a profit attributable to shareholders of 2,045.5 million yuan for the first half of the year. In a move to further enhance shareholder returns and long-term value, the company announced its plan to scale up its share repurchase program in the coming 12 months. This decision reflects the company’s confidence in its long-term strategy, even in a challenging market.

Looking ahead, the company’s Chief Financial Officer, Zhang Ping, predicts that profitability will likely remain under pressure in the second half of the year due to a slower-than-expected recovery in consumption. However, he projects that the full-year operating margins will remain flat compared to the previous year, demonstrating a steady-hand approach to navigating current market volatility.