Annual revenue of 82.2 billion, Mengniu's fundamentals continue to improve, and the "One Body, Two Wings" strategy is effective.

How does Mengniu achieve resilient growth under industry pressure through the “One Body, Two Wings” strategy?

In the challenging year of 2025 for the dairy industry, domestic demand growth is insufficient, and the industry is undergoing structural adjustments, with fluctuations in upstream raw milk prices and diverging consumer willingness. Against this backdrop, Mengniu Dairy is moving forward under pressure, choosing a path of “seeking efficiency internally and expanding incrementally externally.”

On March 25, Mengniu Dairy released its 2025 annual performance report, achieving an annual revenue of 82.24 billion yuan and a net profit attributable to shareholders of 1.55 billion yuan. As analysts noted, in 2025, Mengniu Dairy’s business structure continued to optimize, further enhancing its growth resilience.

In addition, in 2025, Mengniu Dairy achieved three historical highs—gross profit margin reached 39.9%, operating cash flow was 8.75 billion yuan, and free cash flow was 6.3 billion yuan. Mengniu explained that the increase in gross profit margin was primarily due to the decline in raw milk prices and optimization of product categories.

Amid continuous changes in consumer demand, channel scenarios, and competitive environments, this achievement is hard-earned.

“Facing the changes in people, goods, and places today, all our business formats are innovating and changing, actively embracing new trends.” At the performance briefing held on March 26, Mengniu Dairy’s President Gao Fei stated that multiple innovative measures taken by Mengniu have yielded solid results, adhering to the fundamental logic of creating value through value, which helps the company avoid the trap of low-price competition.

In 2025, Mengniu Dairy firmly promoted the “One Body, Two Wings” strategy, with continuous optimization of product categories.

In terms of “One Body,” both ambient and chilled products performed steadily, solidifying the foundation of liquid milk, with fresh milk, cheese, milk powder, and domestic ice cream segments achieving double-digit growth; on the “Two Wings” side, innovative businesses made breakthrough progress in deep processing and functional nutrition, and international businesses performed well in the Southeast Asian market and Australia-New Zealand base.

A review of the performance announcement reveals that Mengniu’s business performance in 2025 can be summarized in two words: “stability” and “progress.” Specifically, “One Body” stabilized the core of Mengniu’s business, while “Two Wings” supported the second curve.

Liquid milk is the foundation of Mengniu and the ballast of the entire company. In 2025, in the ambient segment, the flagship brand “Telunsu” celebrated its 20th anniversary, launching the “Shajin Tuhai” high-end organic milk, further solidifying its position in the high-end market; the chilled segment has maintained the top market share for 21 consecutive years.

The market share of the fresh milk segment further increased. Among them, the high-end brand “Daily Fresh Language” continued to strengthen its 4.0 series and launched new products such as lactose-free double protein and A2β-casein, entering segmented scenarios. The domestic ice cream business continued to optimize its product layout and scenario adaptation, focusing on the dual-brand strategy of “Adaptability + Green Mood,” achieving stable growth.

The milk powder segment achieved nearly 10% growth, especially accelerating in the second half of the year. The cheese segment’s annual growth exceeded 20%, with the synergy between Mengniu and Mellow Dairy continuing to be released, further solidifying its industry-leading position.

On the “Two Wings” side, new businesses and international businesses made substantial breakthroughs in 2025, supporting Mengniu’s second curve.

In terms of innovative businesses, Mengniu accelerated the industrialization pace in the deep processing field. Test products like lactoferrin, micellar casein, and D90 demineralized whey powder all met national standard requirements, and products such as mascarpone and fresh mozzarella cheese rolled off the production line, taking a key step in industrial development and breaking the technical bottleneck and reliance on imports.

Additionally, Mengniu’s professional dairy products have successfully entered the supply chains of leading tea, bakery, and restaurant chain brands, significantly increasing market penetration. The sports nutrition brand “Misen” completed nearly 100 million yuan in Series A financing, gaining dual recognition from consumers and investors.

In terms of international business, the Aishue brand maintains the top market share in Indonesia and has expanded into emerging markets like the Philippines, Vietnam, Africa, and Latin America, becoming a leading brand in multiple markets. Meanwhile, Mengniu has strengthened the strategic positioning of Burra Foods for B2B and Bellamy’s for B2C, based in Australia, accelerating expansion into domestic, Southeast Asian, and other global markets.

Behind the steady promotion of the “One Body, Two Wings” strategy is the evolution of Mengniu Dairy’s four capabilities—brand leadership, diversified cross-border construction of a moat; technological innovation, creating new productive forces; digital transformation, reducing costs and increasing efficiency across the chain; channel upgrades, building a holistic channel ecology.

For example, in continuously strengthening the brand, in 2025, Mengniu created a phenomenal marketing event by collaborating with “Ne Zha 2,” driving sales growth. At the same time, its marketing around “Sports + Products” deeply engaged in top international and domestic sports events such as the Winter Olympics, World Cup, and Marathons in 100 cities, significantly enhancing brand awareness, reputation, and global influence.

Mengniu Dairy has also established a three-year shareholder return plan for 2025-2027, aiming for stable dividend increases per share over the next three years while maintaining the buyback rhythm for 2024 and 2025, continuously enhancing shareholder returns.

In the announcement, Mengniu stated that the dividend per share for 2025 would be 0.52 yuan, with a total dividend amounting to 2.017 billion yuan. Mengniu continues to return value to shareholders through tangible actions.

Looking towards 2026, Mengniu indicated that its growth rate for January and February outpaced the industry, positioning itself proactively in channel transformations; the growth structure is healthy: ambient products contribute incrementally, chilled products contribute growth rates, ice cream contributes surprises, and cheese and milk powder follow steadily, with multiple categories and channels driving growth together, demonstrating strong risk resistance; emerging tracks such as membership stores, high-precision super, and instant retail have all achieved high growth, indicating that Mengniu’s investments in “building product capabilities together” and “efficiency communities” have entered a harvest phase.

Based on the performance from January to February, it can be said that it was a “good start” for Mengniu. The key for the future is how to continue the “good start” into 2026 and convert it into assured growth for the entire year.

“The core strategy is to continuously focus on differentiation in product capabilities through co-creation with retail partners; at the same time, relying on digital transformation to deepen collaboration in efficiency; striving to ensure that the dividends from emerging channels are transformed into capabilities and finding breakthroughs for the transformation of traditional channels, ensuring growth for the entire year,” Mengniu stated.

Mengniu Dairy President Gao Fei stated that Mengniu will actively respond to the national “14th Five-Year” health-first development strategy, firmly uphold the “One Body, Two Wings” strategy, accelerate the layout of basic nutrition, functional nutrition, medical nutrition, and other nutritional tracks, continuously creating nutritional value for consumers through product value, and contribute greater strength to accelerate the revitalization of the dairy industry and “Healthy China” initiative through the company’s own high-quality development.