BEIJING, Nov. 7 (Xinhua) -- Inner Mongolia Yili Industrial Group, one of the country's top dairy companies, posted a significant profit rise for the first three quarters of the year.
Net profits jumped 20.69 percent year on year to reach 4.39 billion yuan (around 655 million U.S. dollars) for January-September, according to a statement filed to the Shanghai Stock Exchange.
Revenues grew 0.98 percent from a year earlier to 45.92 billion yuan.
The company attributed the profit surge to its fast-growing premium, organic segment. Sales of Ambrosial, its high-end yoghurt, are expected to double this year.
Yili is paying 4.6 billion yuan for 37 percent of China Shengmu Organic Milk, the largest Chinese organic milk producer and the only one in the country certified to meet European standards.
The acquisition of Hong Kong-listed Shengmu will allow Yili to secure an organic milk supply and to widen distribution in the sector.
The acquisition will also help Yili improve its brand equity in the high-end sector, where its rival Mengniu currently has the advantage.
In 2015, Mengniu held 37-percent market share in the high-end milk sector, while Yili and Shengmu held 26.6 percent and 7.6 percent, respectively. Enditem
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