China Mengniu Recovers from Milk Scandal, Posts Profits

China Mengniu Dairy Company has shown signs of recovering from the 2008 melamine scandal by posting a net income of CNY1.1bn ($161m), compared with a loss of CNY948.6m ($139m) a year earlier.

The Chinese milk producer’s sales from liquid milk, which shared 88% of total revenue in 2009, rose 7.9% to CNY22.7bn ($3.3bn), Mengniu said.

The sales of ultra-high-temperature and long-life milk products increased by 3.6% to CNY14.2bn ($2bn), while revenue from milk beverages rose 14.2% to CNY6.4bn ($937.4m).

The company’s capital spending in 2009 was CNY670m ($98m).

In 2008, the dairy company’s profit dropped following the melamine contamination of milk products being linked to the deaths of at least six infants and the sickening of 300,000.