China Shengmu Organic Milk narrows losses, boosts cash EBITDA despite revenue dip

For the six months ended 30 June 2025, China Shengmu Organic Milk Limited reported a net loss attributable to owners of the parent company of RMB48,322 thousand, a significant improvement from RMB143,681 thousand in the prior year, marking a 66.4% decrease in loss. The company's Cash EBITDA surged by 19.7% to RMB484,420 thousand, up from RMB404,740 thousand in 2024, demonstrating enhanced operational efficiency.

Despite a 3.1% decline in revenue to RMB1,444,274 thousand, largely due to a continuous decline in raw milk selling prices, the Group's gross profit stood at RMB364,866 thousand with a gross profit margin of 25.3%. Cost of sales per kilogram of milk decreased by 7.4% to RMB2.89 per kilogram. Administrative expenses also fell by 11.0% year-on-year to RMB55,768 thousand, and finance costs decreased by 17.5% to RMB19,366 thousand.

The annualized milk yield per milkable cow increased by 1.7% to 12.27 tonnes, supporting a 6.3% rise in raw milk sales volume to 372,973 tonnes. As of 30 June 2025, the Group's total equity was RMB4,131.7 million, and net current liabilities were RMB840,273 thousand. The board did not recommend an interim dividend.