Yili Group’s New Zealand-based dairy companies are forecasting continued revenue growth into next year, following strong gains in the first half of this year.
Westland Milk Products and Oceania Dairy, both owned by Yili, reported a combined unaudited revenue increase of 16 per cent for the first six months of this year compared to the same period last year. Pre-tax profit also rose 12 per cent.
Executive Director Zhiqiang Li said the companies are well-positioned for long-term growth thanks to major investments in production capacity at key sites.
“Production capacity of high-demand, high-value products across Westland’s Hokitika and Rolleston sites and ODL’s Glenavy facility has undergone significant investment to capitalise on surging global demand for high-quality dairy products,” Li said.
Key upgrades include a 10,000-tonne increase in butter production at Hokitika and expanded skim milk powder output at Glenavy.
These improvements have supported a 20 per cent rise in UHT cream production at Rolleston, much of which is exported to China, aided by new equipment such as a silo and upgraded unloading facilities.
Since last year, Westland and Oceania have collaborated on sales and marketing to offer a broader range of dairy products.
“Profits for the individual companies in the meantime will go through a consolidation period; however, both total revenue and profit margins are expected to continue to show healthy growth,” Li added.
