Paediatric probiotics offset China’s infant formula revenue slump for H&H, while adult nutrition sales surge
Although China’s infant formula market is shrinking, Chinese parents are still willing to spend on nutraceuticals for their babies. This is seen from the half-year financial results of Health and Happiness Group (H&H Group), where the paediatric probiotics business has helped to offset a revenue slump in the infant formula business.
The Hong Kong-headquartered firm said that its infant formula milk business was down 10.2 per cent in revenue to RMB$2.2bn (US$308m).
However, this was offset by a 48.7 per cent growth in its Biostime paediatric probiotic and supplement business, which included products such as the Biostime Kids Gummies range.
The a2 Milk Company (a2MC) said its infant milk formula business in China had grown 8.4 per cent for the financial year ending on June 2023, against the backdrop of a declining infant formula market.
Citing data from Kantar Worldpanel, the company said that China’s infant milk market was down 12.1 per cent in volume during FY23.
Yet, its China label product – a2 至初® – had outperformed as sales went up 27.8 per cent to NZD$559.3 million (US$333.4m). Its English label product, sold via daigou, offline-to-online (O2O), and cross-border e-commerce also saw a 51 per cent in growth in sales to $386.2m (US$230.2m).
Kirin has set a revenue and profit margin target for Blackmores which it officially acquired in August. The Australia-origin nutraceutical brand has to meet the goal of 100 billion yen (US$687m) revenue and a net operating profit margin of 15 per cent or more by around year 2030.
The Japanese-conglomerate said the above when revealing its financial performance for the first six months of 2023.
President and CEO Yoshinori Isozaki said the firm would “focus on maximising the value of Blackmores” as part of its strategies in growing its health science business.
Haleon, the company behind vitamin brands Centrum and Caltrate, said VMS revenue was down 0.5 per cent in the first six months of this year, with the decline in the US offset by growth in Asia Pacific and Europe.
Sales of the VMS category has started returning to pre-pandemic levels, CEO Brian McNamara said. Still, he said that the VMS category has always been a healthy category pre-COVID and he fully expected it to remain so post-pandemic.
China is one example where the VMS category has grown and was “in good shape” after the country went out of COVID-19 lockdowns in the first half of this year, he said.
Danone H1 results: Aptamil delivers ‘solid growth’ while Mizone recovers from underperformance in China
Danone has reported ‘solid growth’ in its infant formula brand Aptamil in China for the first six months of 2023, while functional drink brand Mizone has recovered from underperformance after product revamps.
In its latest financial report, Danone said sales were up 12.4 per cent to 1.8 billion euros (US$1.9bn) on a like-for-like basis in China, North Asia, and Oceania.
Specialised nutrition is the firm’s largest portfolio in China, North Asia, and Oceania, and sales were up 10.8 per cent to 1.2bn euros （US$1.3bn） on a like-for-like basis.