China Mengniu Dairy (2319.HK) recorded a 28.4 percent year-on-year rise in 2011 net profits to 1.59 billion yuan with gross margin of 25.7 percent, reports sina.com.cn, citing a company filing.

The firm also said first quarter sales will show year-on-year growth, while prices will be adjusted based on the price of raw materials.

Sales revenue in 2011 grew 23.5 percent to 37.39 billion yuan, 90.1 percent of which was contributed by liquid milk businesses.

Gross profit in 2012 climbed 23.2 percent year-on-year to 9.59 billion yuan.

Mengniu plans a final dividend of 0.198 yuan per share, up 23.7 percent from 2010.

Company CFO Wu Jingshui said the firms' sales volume has been affected by negative media reports about milk quality in 2011. Wu said the company strengthened its internal management and consistently rolled out new products while improving cost controls and optimizing its product mix during 2011.

Wu said Mengniu will consider raising prices if domestic raw material prices continue to rise sharply. The company raised ice cream and yogurt prices in January.

Mengniu Dairy CEO Lu Jianjun said the company re-entered the Hong Kong last October, with its products being sold in 400 shops including PARKnShop. The firm will continue to expand in Hong Kong, Macau, Singapore and Mongolia and form a overseas marketing center and overseas strategic planning department, added the CEO.

Wu said the company will invest 3 billion to 3.5 billion yuan developing new pastures that can hold 150,000 cows within next three to five years.