---
title: "All Five Major Dairy Companies Release Half-Year Reports, Daily Ad Spending Exceeds 50 Million Yuan! What We Drink Isn't Milk, It's Ads!"
description: "With the release of Bright Dairy's half-year report, the first-half results of five listed dairy companies—Yili, Mengniu, Bright, Beingmate, and Sanyuan—are now complete. Together, they achieved operating revenue of 71.116 billion yuan and net profit of 4.468 billion yuan, with all except Beingmate showing growth year-on-year. As FMCG products, dairy companies' advertising and promotion expenses are significant; the total ad spending for these five in the first half reached 9.537 billion yuan. As one netizen joked, \"What we drink isn't milk, it's ads.\""
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-09-03"
language: "en"
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# All Five Major Dairy Companies Release Half-Year Reports, Daily Ad Spending Exceeds 50 Million Yuan! What We Drink Isn't Milk, It's Ads!

> With the release of Bright Dairy's half-year report, the first-half results of five listed dairy companies—Yili, Mengniu, Bright, Beingmate, and Sanyuan—are now complete. Together, they achieved operating revenue of 71.116 billion yuan and net profit of 4.468 billion yuan, with all except Beingmate showing growth year-on-year. As FMCG products, dairy companies' advertising and promotion expenses are significant; the total ad spending for these five in the first half reached 9.537 billion yuan. As one netizen joked, "What we drink isn't milk, it's ads."

With the release of Bright Dairy's half-year report, the first-half results of five listed dairy companies—Yili, Mengniu, Bright, Beingmate, and Sanyuan—are now complete. Together, they achieved operating revenue of 71.116 billion yuan and net profit of 4.468 billion yuan, with all except Beingmate showing growth year-on-year.
As FMCG products, dairy companies' advertising and promotion expenses are not to be underestimated. According to statistics, the total ad spending for Yili, Mengniu, Bright, Sanyuan, and Beingmate in the first half reached 9.537 billion yuan. As one netizen joked, "What we drink isn't milk, it's ads."
**For dairy companies facing severe product homogenization, high-frequency advertising bombardment has become the norm. While this boosts brand awareness, it also eats into corporate revenue and overdraws product sales to some extent.**
**Yili Earns 3.2 Billion in First Half, Remains Top**
From the half-year reports of the five major dairy companies, Yili continues to hold the top spot on the "profit ranking" among Chinese dairy companies. During the reporting period, the company achieved operating revenue of 29.925 billion yuan, a year-on-year increase of 0.23%; net profit attributable to shareholders of the listed company was 3.211 billion yuan, up 20.63% year-on-year.
As Yili's biggest competitor, Mengniu Dairy's operating revenue seems close to Yili's, with first-half figures of 27.26 billion yuan, up 6.6% year-on-year, but net profit was only 1.077 billion yuan, down 19.5% from the same period last year. Mengniu attributed the decline mainly to "losses from associate company Modern Farming and reduced profits from Yashili."
Bright Dairy ranks third, but compared with Yili and Mengniu, it lags far behind in both operating revenue and net profit. Data shows that Bright Dairy achieved operating revenue of 10.27 billion yuan in the first half, with net profit attributable to shareholders of the listed company at 241 million yuan.
Sanyuan, ranked fourth on the "profit list," saw its net profit surge 202.4% during the reporting period, but the actual profit amount was only 153 million yuan, of which 118 million yuan came from non-recurring gains and losses, including 100 million yuan in government subsidies.
Beingmate suffered a huge loss of 200 million yuan in the first half, down 108.07% year-on-year. The main reasons for the decline in revenue and profit were the impact of counterfeit milk powder incidents in the market and the chaotic industry order during the transition period of the new formula registration policy.
**Rapid Growth in High-End Dairy Products**
Taking Yili as an example, in the first half, Ambrosial (Anmuxi) revenue grew 131.4% year-on-year, with market share up 3.3 percentage points from the same period last year; Jindian and Changqing retail sales increased by 10.4% and 21.7%, respectively, with market share up 0.5 and 0.7 percentage points.
Mengniu emphasized in its half-year report that its premium brands Deluxe (Telunsu), Pure甄 (Chunzhen), and Guanyiru all achieved double-digit growth. It is understood that sales from these star brands accounted for over 30% of total revenue in the first half. For Bright Dairy, its room-temperature business unit, represented by Mosilian, achieved revenue of 4.275 billion yuan in the first half. Sanyuan, while maintaining double-digit growth in high-end products, also launched new products such as Iceland Yogurt and Qingneng Yogurt.
**Daily Ad Spending Exceeds 50 Million Yuan, More Than Twice Net Profit**
Although dairy companies frequently launch mid-to-high-end products, they generally face severe homogenization. To successfully "break through," large-scale, high-frequency advertising "bombardment" has become the preferred strategy for major dairy companies. **According to statistics, the five major dairy companies spent a whopping 9.537 billion yuan on advertising in the first half, 2.13 times their total net profit, with daily spending averaging 52.98 million yuan.**
By company, except for Sanyuan, which saw a slight decline in ad spending, the other four companies all saw significant increases in this expense, even Beingmate, which lost 200 million yuan in the half. Yili spent the most on advertising at 4.07 billion yuan, compared with 3.169 billion yuan in the same period last year; Mengniu, Bright, and Beingmate spent 2.826 billion yuan, 690 million yuan, and 205 million yuan, respectively, up 23.4%, 54.3%, and 11.10% year-on-year.
**Perhaps due to cost pressures, news of dairy price increases frequently appears in the media. Sanyuan, Yantang, and other domestic milk brands raised prices at the beginning of the year, with dozens of milk and yogurt products generally increasing by 5%–10%. Under high advertising and promotion expenses, profit and cost have become an irreconcilable contradiction. Investment may seize market opportunities, but non-investment means being abandoned by the market. Who will pay for the high promotion expenses after weighing the pros and cons?**
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