Ausnutria slips into the red on changing global infant formula market

Dairy products company Ausnutria Dairy Corporation Ltd. (1717.HK) said on Friday its revenue fell sharply in the first half of 2026, as it swung into the red, citing changes in demand for infant formula and in the international logistics environment.

The company expects to report revenue of 3.07 billion yuan ($453 million) to 3.17 billion yuan for the first half of 2026, down about 20% at the midpoint from 3.89 billion yuan a year earlier. It added it expects to report a net loss of 685 million yuan to 785 million yuan for the six-month period, reversing a profit of 180.9 million yuan a year earlier. Excluding a one-time inventory-related adjustment and related charges, the company expects to record a core net operating profit of 155 million yuan to 255 million yuan for the first half of this year.

Ausnutria said its inventory turnover efficiency and fulfilment costs were negatively affected in the first half by factors such as changes in the international logistics environment, fluctuations in transportation costs and tightening regulatory requirements. In response, it made a one-time inventory-related adjustment during the period.

Ausanutria’s stocks is down about 37.2% this year.

By Doug Young

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