China Mengniu Dairy Co, the nation's largest dairy firm, said it returned to profit last year, joining major dairy companies that benefited from a recovery in the industry after a tainted milk scandal but an analyst warned that risks to maintaining profit remain.
Milk producer China Mengniu Dairy Co said yesterday first half profit grew 14 percent despite a fall in sales revenue, indicating that it has recovered from most of the problems associated with last year's melamine scandal.
China Mengniu Dairy Co plans to raise HK$3.06 billion (US$395 million) by selling a 10 percent stake to COFCO (Hong Kong) Ltd and Hopu Investment Management Co to boost its capital for expansion, it said yesterday.