Chinese dairy giant Yili continues to grow, but bottom line slips

The Chinese dairy company Yili reports revenue growth of more than 4% over the first half of 2026. Gross profit has even grown by 10%. However, the bottom line was slightly lower than in the first half of last year. The results remain impressive compared with the performance of Western dairy companies. Of revenue equivalent to €8.26 billion, a profit of €962 million remains for the first half of 2026. The profit margin is 8.93% then (down from 11.63%). The half-year report is fairly limited on how these figures can be justified. Yili generates 57.4% of revenue from the sale of liquid dairy products mainly on the Chinese market. Milk powders and other processed dairy products account for 26.4% of revenue and ice cream for 14.2%. The remaining 2% comes from other products. According to the half-year report, earnings come mainly from ice cream production and from the small group of 'other products'. Liquid dairy and milk powders show fairly little growth. Still, a very good result is being achieved. The report does not mention that subsidiary Ausnutria is doing somewhat less well. It does say that Ausnutria will seek more opportunities in markets outside China. In that core market it is more difficult to produce profitably. To strengthen the company's market value, Yili announces a share buyback program. About €256 million has been set aside for this.