Net profit jumps 30% at Chinese dairy firm despite higher cost base

Bright Dairy & Food said net profit rose 30.4% in 2013 on strong demand for dairy products that was offset by higher costs due to raw milk shortages in China which pushed up prices locally and internationally.

China’s number four dairy company, majority-owned by state-owned conglomerate Bright Food Group, made a net profit of 406m yuan (€47m) in the year to the end of December, up from 311.3m yuan profit in 2012.

Booming demand in China for milk and milk powder is a big driver for the global dairy industry. Strong dairy demand has helped local rivals such as China Mengniu Dairy increase annual net profit by 25%.