Total revenue of 61.327 billion yuan in the first three quarters, Yili's giant elephant continues to dance. On October 30, Yili Co., Ltd. (600887) released its third-quarter report, showing total revenue of 61.327 billion yuan in the first three quarters, a year-on-year increase of 16.88%. Revenue and net profit continued to grow simultaneously, firmly ranking first in the industry and continuing to be the main force of growth in China's dairy industry. Yili's rapid growth was already evident in its first-half performance, with total operating revenue of 39.943 billion yuan in the first half, an increase of 19.26% compared to the same period last year. According to Yili's semi-annual report, the editor of Consumer Daily Exposure learned that Yili is also the first domestic dairy giant to exceed 20 billion yuan in single-quarter main business revenue. In the second quarter alone, Yili achieved operating revenue of 20.013 billion yuan, while the third quarter's total revenue hit a new high of 21.385 billion yuan. Based on the growth rate of the first three quarters, Yili's full-year performance will exceed 80 billion yuan, making it the first domestic dairy giant to join the 80 billion club. And according to this year's growth rate, Yili's performance in 2020 will go further, breaking through the 100 billion mark, thus entering the top five global dairy companies and setting a new height for the development of Chinese dairy enterprises. Total revenue of 61.327 billion yuan in the first three quarters, with a record total revenue of 21.385 billion yuan in the third quarter The third quarter continued the relatively high growth rate of the first half. The financial report shows that from January to September, Yili achieved total revenue of 61.327 billion yuan, a year-on-year increase of 16.88%. The third quarter continued the rapid growth of the first half. In the first half, Yili's three major business segments—liquid milk, milk powder, and low-temperature liquid milk—saw revenue growth rates of 20.5%, 27.26%, and 14.89%, respectively, compared to industry growth rates of 9%, 17%, and 5.5% as measured by Nielsen. In the first half of 2018, Yili's performance grew rapidly. Driven by three key products—Jindian, Ambrosial, and Changyi—the company's liquid milk business launched new SKUs to continue its momentum. Innovative products advanced rapidly, with Brown Charcoal breaking through nationally, capturing a 57% market share in its category, achieving the number one share. Kantar data shows that as of June 2018, the market penetration rate of the company's room-temperature liquid dairy products was 81.2%, an increase of 2.7 percentage points compared to the same period last year. Nielsen retail measurement data shows that retail sales of infant formula in maternal and child channels increased by 38.7% compared to the same period last year. At the same time, with the expansion of overseas markets, the company's channel penetration advantage continued to be consolidated, and its comprehensive market share remained the industry's first. Yili is the only company in the industry that can deliver more than 100 million products to consumers every day. Yili is not satisfied with this and continues to seek new blue oceans. Under the trend of consumption upgrading, Yili seizes new market opportunities, gains insight into new consumer demands, actively adjusts product strategies, accelerates R&D and innovation, and frequently launches new products. "Joy Day Flavored Fermented Milk" and "Qiaolezi Qixuan Crispy Layer Ice Cream" have become consumers' "new favorites." Yili also continues to expand its product line, launching Zhi Xuan Soy Milk at the end of 2017 to enter the plant protein field, providing consumers with more comprehensive and balanced nutrition. High-end products continue to gain momentum, continuously incubating billion-level sub-brands such as Ambrosial and Jindian Yili's performance continues to grow rapidly and steadily, with high-end products serving as a booster for its steady and rapid development. Consumer Daily Exposure learned that the semi-annual report shows that in the first half, sales revenue from key product series such as "Jindian," "Ambrosial," "Changqing," "Meiyitian," "Joy Day," "Jinlingguan," "Qiaolezi," and "Zhenxi" increased by more than 30% compared to the same period last year; the proportion of new product sales revenue increased by 5% compared to the same period last year. It is particularly worth noting that Yili has now built 11 brands with annual sales exceeding 1 billion yuan, and has created the brand Ambrosial yogurt with sales exceeding 10 billion yuan, pioneering the industry's "core" product era. These brands with sales exceeding 1 billion yuan are catching up with "Jindian," "Ambrosial," You Suan Nai, "QQ Star," and "Jinlingguan," and in time, most will become explosive products exceeding 5 billion yuan, or even approach 10 billion yuan. As a domestic dairy giant, while consolidating its main business, Yili is also attempting to enter the health beverage field to open up long-term growth space. In 2017, Yili successively launched Zhi Xuan Soy Milk, Huan Xing Yuan functional beverage, and fruit yogurt drink "Guoguo Xi," and will launch cheese in the third and fourth quarters of this year. While major high-end brands continue to grow, it is cultivating many new growth points for performance, laying a solid foundation for long-term growth. Now Yili is actively laying out the dairy and cold drink markets in Pakistan and Southeast Asia, aiming to use global good resources to make good Chinese milk, and use good Chinese milk to create good Chinese brands. Yili's strong market penetration capability has laid a solid foundation for the company's rapid development and has opened new horizons for the industry to go global. Full-year performance will exceed 80 billion yuan, with Q2 revenue breaking 20 billion, creating the Yili speed! As China's largest dairy giant, Yili's performance highlights are endless. In the first half of this year, while the outside world focused on Yili's total revenue of about 40 billion yuan, it ignored a very important data point in Yili's performance. The editor of Consumer Daily Exposure learned that in the second quarter alone, Yili achieved main business revenue of 20.013 billion yuan, a year-on-year increase of 13.8%, setting a new record. In the third quarter, Yili again set a new high, with total revenue of 21.385 billion yuan. For two consecutive single quarters, main business performance exceeded 20 billion yuan, which is almost equivalent to the size of the third-largest domestic dairy company, setting a new record in the dairy industry and providing an important reference for the rapid development of domestic dairy enterprises. Now, with steady and rapid revenue growth in the first three quarters, this lays the foundation for Yili's subsequent performance to continue to achieve breakthroughs. In the 2017 annual report, Yili planned to achieve total operating revenue of 77 billion yuan and total profit of 7.5 billion yuan in 2018. According to the current growth rate of the first three quarters, after calculation, Yili's full-year performance this year will smoothly pass the 70 billion mark and then break through the 80 billion mark, setting a record of successively breaking through 70 billion and 80 billion. But in actual performance, Yili's growth rate is much higher than previously expected, showing that Yili has strong momentum for performance growth and is fully prepared to achieve the goal of 100 billion yuan in sales by 2020. In recent years, despite the overall slowdown in the domestic dairy industry, Yili has been able to maintain steady and rapid growth, demonstrating strong ability to withstand pressure and risks. This also shows the profound heritage and strength of China's largest dairy company. Yili's steady, sustained, and healthy growth provides direction for the industry's high-quality development and a reference for the revitalization of China's dairy industry. Under the trends of consumption upgrading and global dairy integration, Yili has built a "global dairy symbiosis economic circle" by continuously deepening its core "core" momentum. Through complementary sharing of global dairy resources and optimizing the efficiency of global dairy resource allocation, Yili provides new ideas for the global coordinated development and win-win cooperation of China's dairy industry. Source: Consumer Daily Exposure -END-