Infant formula maker China Feihe expects 33.4% – 42.4% drop in first half amid falling birth rate
Infant formula maker China Feihe expects 33.4% – 42.4% drop in first half amid falling birth rate

Infant formula maker China Feihe expects 33.4% – 42.4% drop in first half amid falling birth rate

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

China Feihe, the country’s dominant infant formula maker, said that the company is expected to record a profit of 2.2 – 2.5 billion yuan in the first half of the year, sliding by about 33.4% – 42.4% from the same period last year.

Feihe is expected to record a revenue of approximately 9.5 – 9.8 billion yuan for the six months ended 30 June 2022, representing a drop of approximately 14.9% – 17.4% from a year earlier, it said.

The company attributes the decline to the falling birth rate in mainland China which reduced sales of infant formula products, and the company’s strategy to keep product fresh in which inventories of some products were reduced.

Given the falling birth rate in China and shrinking infant formula market, the company will actively explore adult milk-powder market in the future, it said.