Ausnutria Dairy has achieved remarkable results in globalization, with overseas revenue of goat milk powder increasing by more than 50%

Under the global layout, Ausnutria Dairy has formed a business structure with formula milk and nutrition and health going hand in hand, with dual growth curves, which continues to drive its overall performance growth.

After more than two years of adjustment and optimization, Ausnutria Dairy's revenue has returned to the growth track.
On August 27, Ausnutria Dairy Co., Ltd. (stock code: 1717.HK, hereinafter referred to as "Ausnutria Dairy") released its 2024 first half performance announcement. The announcement showed that the company achieved revenue of RMB 3.681 billion in the first half of 2024, a year-on-year increase of 4.8%; gross profit was RMB 1.598 billion, a year-on-year increase of 8.4%, and gross profit margin increased by 1.4 percentage points year-on-year.
Looking at the listed dairy companies that have released semi-annual reports, Ausnutria Dairy is one of the few companies that have achieved growth.
Overall, China's infant formula industry is still facing severe challenges. Due to the decrease in the number of births, the total number of children aged 0-3 in China has dropped from 50.1 million in 2018 to 28.5 million in 2023, which has also led to the overall shrinkage of the milk powder market. Nielsen IQ data shows that from January to July this year, the sales growth rate of infant formula powder across all channels was -4.6% year-on-year, which is an improvement compared to the double-digit decline in 2023, but the industry adjustment has not yet bottomed out.
The total market volume is still shrinking, and the competition in the domestic market is intensifying. In such a challenge, how can Ausnutria Dairy break through the complex and changing business environment? Its route of growing against the trend, returning to the growth track and outperforming the market may bring inspiration to China's infant formula industry.

The global layout has achieved remarkable results, and the overseas revenue growth of goat milk powder has exploded

In fact, in the context of accelerated competition in China's infant formula industry, many companies are trying different ways to find market growth to promote sustainable growth in performance. Ausnutria Dairy has adhered to a differentiated and international development strategy since its establishment.
Ausnutria Dairy fully upgraded Kabrita and introduced it to China in 2011, becoming the first listed dairy company to enter the Chinese goat milk powder market. At present, the company's goat milk powder business has completed its strategic layout in the global core markets (Asia, North America, the Middle East, and the CIS), and has built a product matrix that meets the nutritional needs of all age groups, which is sold well in more than 60 countries and regions around the world. After years of layout, the goat milk powder business has become an important growth engine for Ausnutria Dairy, and it has also enabled it to demonstrate strong enough resilience in the changes in the market industry.

Last year, the Jinqi Bio-probiotics Huai'an Super Factory under Ausnutria was officially put into production. The first phase of the factory can ferment 8 types and 33 strains of probiotic powder every year. The factory is one of the landing projects of Ausnutria's "14th Five-Year Plan" key research and development plan, and it is also the only national probiotics demonstration production line in the industry. With this, Ausnutria has become the only company in China's dairy industry that has established a full industrial chain of probiotics, completing the layout of the entire industrial chain from independent research and development, production to sales of its own brands.
Until the first half of 2024, in order to adhere to high-quality and sustainable development, Jinqi Bio actively adjusted its strategy, continued to increase in-depth cooperation with top research and development institutions at home and abroad and investment in the research and development of its own strains, and realized the self-fermentation and full mass production of all strains after the Jinqi Bio-Huai'an Factory (which has the only national probiotics demonstration production line in the industry) was officially put into production. Ausnutria Dairy said in the report that Jinqi Bio has currently undertaken the large-scale production and market promotion of the star strains authorized by Yili Innovation Center and Jiangnan University, further enhancing the core competitiveness of the company's upstream nutritional products business, and laying a solid foundation for greater development in the future.