Ausnutria Dairy Corporation Ltd. (AUSNUTRIA, 01717) released its unaudited interim results for the six months ended 30 June 2026, reporting a sharp reversal into loss driven by one-off channel and inventory adjustments and higher raw-material costs.
Financial Highlights • Revenue fell 18.6% year on year to RMB 3.16 billion, reflecting weaker infant-formula sales in mainland China and supply-chain disruptions. • Gross profit contracted 68.1% to RMB 518.78 million; gross margin narrowed to 16.4% from 41.9% after a RMB 616.47 million inventory writedown and cost inflation. • The group posted a net loss attributable to shareholders of RMB 705.05 million, versus a profit of RMB 180.45 million a year earlier. • Basic loss per share: RMB 0.3969 (1H 2025 EPS: RMB 0.1014). • No interim dividend was declared.
Segment Performance • Own-branded goat-milk formula (Kabrita): revenue down 19.8% to RMB 1.49 billion amid distribution restructuring in China; overseas sales up 6.8%. • Own-branded cow-milk formula: revenue down 45.6% to RMB 523.10 million, pressured by industry competition and logistics constraints. • Cheese products: revenue up 7.5% to RMB 514.50 million. • Nutrition products: revenue surged 52.7% to RMB 237.41 million, supported by probiotic launches and channel expansion. • Dairy and related products still accounted for 92.5% of group turnover, with nutrition taking the remaining 7.5%.
Balance-Sheet and Liquidity • Total assets declined to RMB 9.72 billion (31 Dec 2025: RMB 10.26 billion), while equity fell to RMB 5.15 billion after the interim loss and a RMB 77.38 million final 2025 dividend payment. • Cash, time deposits and long-term deposits totalled RMB 1.76 billion; net debt stood at RMB 754.40 million, with a gearing ratio of 7.8%. • Current ratio eased to 0.85x (31 Dec 2025: 1.0x). Inventory days improved to 123 from 155 due to channel destocking.
Key One-Off and Non-cash Items • Inventory provision: RMB 616.47 million linked to channel optimisation and freshness controls. • Goodwill and intangible-asset impairments: combined RMB 43.41 million. • Organisational restructuring costs: RMB 15.95 million.
Post-Balance-Sheet Event On 20 July 2026, the group completed the sale of a 35% stake in Dutch cheese unit Amalthea Group B.V. to A-ware Dairy Trade B.V. for EUR 15.78 million (about RMB 123 million), while retaining majority control.
Outlook Management highlighted ongoing challenges from lower birth rates in China, heightened competition and global supply-chain volatility. Strategic priorities for H2 2026 include strengthening Kabrita’s brand leadership, scaling the high-growth nutrition segment, accelerating international market penetration, enhancing supply-chain efficiency and advancing R&D for novel dairy and probiotic ingredients.