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Dairy giant’s profits plunge in Q1

chinadaily.com.cn | Updated: 2013-04-24 20:06

Beijing Sanyuan Foods Ltd said on Tuesday its first quarter net profit plunged 354.8 percent year-on-year, mainly dragged down by decreasing profits at McDonald’s Corp.

The dairy giant said first quarter revenue hit 940 billion yuan ($151 billion), while it was 12.54 million yuan in the red.

Sanyuan attributed the performance to McDonald's Beijing, which holds around 50 percent of shares.

In 2009, Sanyuan acquired the Hebei based Sanlu Group, which went bankrupt after its melamine food safety scandals. Sanyuan’s business has been affected by the integration.

Statistics show that Sanyuan dominance of the liquid milk market in Beijing has soared from 30 percent to 40 percent.

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