Beverages News
- Bright Dairy profit drops on ad costs
Date: 27-Mar-2007 Sources: (Shenzhen Daily)
BRIGHT Dairy & Food Co., a Chinese partner of Groupe Danone SA, said yesterday its 2006 profit fell 27.6 percent as advertising costs rose while units outside of eastern China became less profitable.
Net income fell to 152.8 million yuan (US$19.77 million), or 0.146 yuan a share, from the previous year's 211.1 million yuan, or 0.20 yuan, the firm said in a statement, citing domestic accounting standards. Sales rose 4.5 percent to 7.21 billion yuan.
Bright Dairy has had to increase its advertising budget to compete with China Mengniu Dairy Co., Inner Mongolia Yili Industrial Group and other dairy producers. China's demand for dairy products will grow 12.8 percent a year to reach almost 40 million tons by 2010.
Increasing preference to Western-style diets in China also helped doubled demand for milk during the past five years.
Bright Dairy, 20 percent owned by Danone, the world's largest yogurt maker, said it may boost liquid milk output this year by at least 20 percent to 1.2 million metric tons on expanded capacity.
The Shanghai-listed company may spend as much as 500 million yuan to increase fresh milk production in Shanghai, Beijing and other major cities in eastern China, chairwoman Wang Jiafen said March 7.
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