China Modern #Dairy Considers Paying First Dividend Next Year

Share on twitter
Share on facebook
Share on linkedin
Share on whatsapp
Share on email

China Modern Dairy Holdings Ltd. (1117), the nation’s largest raw-milk producer, will consider paying its first dividend next year as it expands dairy output and boosts profit margins, its deputy chairman said.
The Maanshan, Anhui-based company has also been approached by potential strategic investors looking to tap growing milk demand in the country, Deputy Chairman Gao Lina said in a Nov. 29 interview in Anhui, without providing details.
Producers such as Modern Dairy and New Zealand’s Fonterra Cooperative Group Ltd. (FCG) are looking to increase their presence in the world’s most populous nation as rising incomes boost milk demand. Modern Dairy this year signed an agreement to form two joint ventures with a company part-owned by KKR & Co. (KKR) to build two dairy farms with as many as 10,000 cows over two years as the partners invest a combined $140 million in the next 18 months.
“Milk demand will continue to outstrip supply and we will keep investing and growing even as rivals expand,” Gao said.
Modern Dairy’s shares are up 98 percent to HK$4.21 in Hong Kong this year. The benchmark Hang Seng Index is up 5.4 percent. The company supplies its main customer, China Mengniu Dairy (2319) Co., with unpasteurized milk.
 
Source: Bloomberg

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

Te puede interesar

Notas
Relacionadas