On October 30, Yili Group released its financial results for the first three quarters of FY2023. During the reporting period, the company's revenue amounted to 97.404 billion yuan (approx. USD 13.32 billion) and net profit rose by 16.36%.
These record high figures indicate a continuous improvement in Yili's core business capabilities. The Asian dairy giant continued to step up the application of R&D outcomes, evidenced by the launch of a series of innovative healthy products that have received positive feedback from consumers.
In terms of business units, Yili's liquid milk business secured its leading position in the segment with accelerated growth throughout Q1 to Q3. It reported a revenue of 65.432 billion yuan (approx. USD 8.93 billion) from January to September, a year-on-year increase of 2.07%, and the growth rate reached 8.48% in the strong third quarter. Adult milk powder continued its strong growth, leading the segment with its market share rising to 23.9%. The rapidly growing ice cream business also topped the segment in terms of market share and reported a revenue of 10.383 billion yuan (approx. USD 1.42 billion).
The achievements are attributable to Yili's strong capabilities in transforming its key innovation outcomes into top-selling new products. Benefiting from its digital-oriented upgrading across the entire value chain, the company has seen significant progress in overall business efficiency which is shaping Yili's new competitive advantages. While driving robust development in business performance, Yili's digitalized operation system is also contributing to a sustainable dairy industry, representing success both commercially and socially.
In upstream segments of the industry, Yili has adopted a recycling-oriented sustainability model. It has built a number of ecological smart farms that are equipped with intelligent, low-carbon and eco-friendly facilities. Featuring full-process unmanned operations, the smart farm system pioneers the industry in enhancing efficiency and promoting green and sustainable transformation. The system is also being introduced across China as part of Yili's efforts to reduce the carbon footprint of the entire dairy industry.
At midstream level, Yili has built five net-zero carbon factories and had 31 factories certified as state-level "green factories". In addition, all of its factories in China have completed digitalized upgrades. Embracing digital empowerment and recycling technology, Yili manages to multiply production efficiency and propel green manufacturing.
Towards the downstream, Yili remains a trendsetter in promoting sustainable consumption by adopting eco-friendly packaging. Its SATINE Environmentally Sustainable Packaging with No Ink or Printing won the IDF Dairy Innovation Award, as a recognition of its innovative solutions for reducing carbon footprint.
The company's years of efforts in the ESG field have also earned high recognition from the capital market. In the MSCI ESG Ratings 2023, Yili also received Grade A rating, the highest among all A-share listed dairy producers.
Source: Yili Group