It is not easy to come back from a scandal involving sick infants; nor should it be. When Chinese milk producer Sanlu was caught selling product doctored with melamine in 2008, China’s entire dairy industry was tainted¹.

从致使婴儿得病的丑闻中恢复过来并不容易，也理应不容易。2008年，当中国奶制品生产商三鹿(Sanlu)被查出销售含有三聚氰胺的产品时，整个奶制品业都沾染了污名。

Seven years on and it is recovering — after considerable effort. Full-year results from Mengniu, one of the last brand s standing², might finally point to the future. After Wednesday’s close it said 2014 revenues were up 15 per cent and net profit up two-fifths, beating forecasts by more than a tenth. Growth in higher margin³ yoghurt and health drinks contributed to the beat. On Thursday, the stock rose 10 per cent.

7年过去了，中国奶制品业开始复苏——当然它为此付出了相当大的努力。未倒下的品牌之一——蒙牛(Mengniu)去年全年的业绩或许预示着未来。周三收盘之后，蒙牛表示，2014年收入同比增长15%，净利润同比上升五分之二，超出预期逾十分之一。利润率较高的酸奶和保健饮品对这一超预期的业绩做出了贡献。周四，蒙牛股价上涨了10%。

Product mix has improved, but there is more to it than that, namely operational improvement. Mengniu has been consolidating⁴ its supply chain to ensure quality control. By the end of last year, 96 per cent of its domestic raw milk supply came from larger-scale farms, up from 70 per cent in 2010. It has also built economies of scale elsewhere, lifting asset utilisation in its chilled product line with a simplified offering. Expertise⁵ from Danone of France (with 10 per cent of Mengniu) and Denmark’s Arla (5 per cent) have helped. Mengniu has also been lucky. Falling raw milk prices caused by a supply glut⁶ have boosted margins⁷ more than discounting hit revenues.

产品结构得到了改善，但不止于此，运营方面也有进步。蒙牛一直在整合其供应链以保证质量控制。到去年底，蒙牛96%的国内原奶供应来自规模化、集约化牧场，这个比例高于2010年的70%。蒙牛也在其他方面实现了规模效益，通过精简产品提高了低温产品线的资产利用率。持股蒙牛10%的法国达能(Danone)和持股5%的丹麦爱氏晨曦(Arla)带来的专业经验，对蒙牛的业绩提升也有帮助。蒙牛去年也比较走运。供应过剩所致原奶价格下跌，提升了利润，缓冲了打折销售对收入的冲击。

The company has not just wallowed in its improving fortune. Competition from foreign brands has been fierce since 2008. So as well as a supply chain offensive, Mengniu has boosted marketing⁸ spend. In 2014, selling and distribution costs rose to one-fifth of sales, that is up 6 percentage points from a decade ago. But sales, general and administrative⁹ costs are still lean by international standards. Danone, for example, spends a third of revenues on SG & A.

时来运转的蒙牛并没有沉迷于好运气。自2008年以来，来自外国品牌的竞争一直十分激烈。所以，除了在供应链上主动出击，蒙牛也增加了营销支出。2014年，销售及经销费用升至销售额的五分之一，比10年前提高了6个百分点。但以国际标准来衡量，销售、一般性及管理支出(SG & A)仍处于较低水平。比如，达能的SG & A就达到销售收入的三分之一。

There is a risk that marketing costs will keep rising faster than sales. But in a consumer market where brands have room to build, that investment should pay off.

目前蒙牛存在着营销费用增速持续高于销售额增速的风险。但在一个仍有品牌建设空间的消费者市场，这一投资应会获得回报。