Explore the performance truth of condiment enterprise 2021
2022-04-28
In the case of price increase, has the performance of condiment enterprises improved? Recently, with a number of condiment enterprises announcing their annual reports for 2021, including Haitian flavor industry, Fuling mustard, Jiajia food, Tianwei food, Anji food, Angel yeast, Zhongjing food, etc., their real performance in 2021 also surfaced. As a leading enterprise in the condiment industry, the performance of Haitian flavor industry is obviously not ideal. The annual report shows that in 2021, Haitian flavor industry achieved an operating revenue of 25.004 billion yuan, a year-on-year increase of 9.71%; The net profit attributable to shareholders of listed companies was 6.671 billion yuan, a year-on-year increase of 4.18%. Although the net profit of Haitian flavor industry showed a double growth trend, the growth rate of net profit of Haitian flavor industry hit a new low in the past decade. This is also the first time that the growth rate of net profit of Haitian flavor industry has fallen to single digits since its listing in 2014. Compared with the revenue growth rate of about 15% and the net profit growth rate of 20% in the past decade, the performance growth rate of Haitian flavor industry decreased significantly in 2021. In view of the record low growth rate of net profit of revenue, Haitian flavor industry said in its annual report that the aftermath of the COVID-19, weak consumer demand, rising prices of various raw materials and materials, vicious competition in community group buying, etc., the enterprise's business environment is complex and severe, and the company is facing unprecedented challenges. In addition, affected by the rise in procurement costs, the gross profit margin of Haitian flavor industry was 39.78%, a decrease of 3.73 percentage points; The gross profit margin of soy sauce, oyster sauce and sauce decreased by 4.47, 0.75 and 4.68 percentage points respectively year-on-year. Haitian flavor industry prospectus shows that its procurement is mainly non GM domestic soybeans. In 2021, the costs of upstream raw materials such as soybeans, soybean meal and packaging materials rose sharply, resulting in a decline in gross profit margin. Dalian Commodity Exchange shows that at present, the futures price of Douyi (non GM domestic soybean) is maintained at 6200-6300 yuan / ton, an increase of more than 80% compared with the same period in 2019. In 2021, the operating cost of Haitian flavor industry also increased, with an increase of 16.36%, much higher than the revenue increase of 9.71%. Under the dual pressure of rising raw material prices and increasing operating costs, Haitian flavor industry had to make a decision to increase prices. In October 2021, Haitian flavor industry announced that the ex factory prices of some products such as soy sauce, oyster sauce and sauce will be adjusted by 3% - 7% from October 25, 2021. The price rise did boost the performance in the fourth quarter. In the fourth quarter, Haitian flavor industry achieved a revenue of 7.01 billion yuan, a year-on-year increase of 22.85%, and the net profit attributable to the parent company was 1.963 billion yuan, a year-on-year increase of 7.19%. However, the contribution of price increase to the performance of the whole year is limited, and the overall performance growth rate is lower than expected. Nevertheless, as a seasoning head enterprise, Haitian flavor industry still leads other peers in performance. Fuling mustard, known as "Mustard grass", also announced its performance recently. According to the financial report, in 2021, Fuling pickled mustard achieved an operating revenue of about 2.519 billion yuan, a year-on-year increase of 10.82%; The net profit was about 742 million yuan, a year-on-year decrease of 4.52%, showing a trend of increasing income without increasing profit. In response to the decline in performance, Fuling pickled mustard said that it was mainly due to the repeated COVID-19, the weak consumer market and the rising cost of bulk raw materials, which led to the decline in the company's profits. In fact, in recent years, the growth rate of net profit of Fuling pickled mustard revenue has gradually slowed down. The growth rate of revenue has decreased from 35.64% in 2017 to 14.23% in 2020, further reduced to 10.28% in 2021, and the growth rate of net profit in the same period has also decreased from 63.46% to 28.24%, and decreased by 4.52% in 2021. Behind the slowdown in performance growth, in addition to the rise in raw material prices and epidemic factors, it is not easy for mustard to grow and increase market share. Fuling pickled vegetables had a year-on-year increase of RMB 3.907 billion, with a year-on-year net profit of 2.707 billion in the third quarter, a year-on-year increase of 2.701 billion. In November 2021, Fuling pickled mustard announced that the ex factory prices of some products would be adjusted from the 12th of that month, with an increase of 3% - 19% for each category. Like Haitian flavor industry, Fuling pickle price increase promoted the performance in the fourth quarter, but had little impact on the performance of the whole year. Angel yeast's performance in 2021 also increased revenue without increasing profit. Angel yeast performance report shows that the operating revenue in 2021 was 10.675 billion yuan, a year-on-year increase of 19.5%; The net profit attributable to the owners of the parent company was 1.309 billion yuan, a year-on-year decrease of 4.59%. This is the first decline in net profit since 2017. Angel yeast said that the main reason for the decline in net profit was the increase in cost. In 2021, the cost of Angel yeast reached 7.704 billion yuan, a year-on-year increase of 31.49%, equivalent to 1.5 times the increase in revenue. The increase in cost is due to the large increase in the purchased molasses raw materials, packaging raw materials and related food raw materials. According to the annual report of Zhongjing food, the company achieved an operating revenue of 806 million yuan, a year-on-year increase of 10.95%. The net profit attributable to shareholders of listed companies was 119 million yuan, a year-on-year decrease of 7.33%. Zhongjing food said that the uncertainty of the COVID-19 and the complex and changeable market environment, the less than expected recovery of consumption, the rising cost of raw and auxiliary materials and other factors have brought certain pressure and challenges. According to the annual report of 2021, the operating revenue of Anji food was about 549 million yuan, a year-on-year increase of 30.58%; The net profit was 45.3927 million yuan, a year-on-year decrease of 14.06%. Anji food said that the decline in the company's net profit was due to the continuous repetition of the COVID-19 and the rise in the prices of raw materials. Tianwei food's performance showed a decline in both revenue and net profit. In 2021, Tianwei food achieved a total operating income of 2.026 billion yuan, a decrease of 14.34% over the same period of last year; The net profit attributable to shareholders of listed companies was 179 million yuan, a decrease of 50.96% over the same period last year. Tianwei food said that the company's performance in 2021 was affected by factors such as high base, high inventory and high cost, and the evaluation and demonstration of the impact of the epidemic and the post epidemic era were insufficient, and the end consumption has not yet returned to the normal level before the epidemic. Jiajia food is in the dilemma of huge performance losses and has a poor prospect. On April 20, Jiajia food released its annual performance report, saying that in 2021, the company achieved an operating revenue of 1.755 billion yuan, a year-on-year decrease of 15.34%; The net profit loss attributable to the shareholders of the listed company reached 80.1639 million yuan, which turned from profit to loss. This is also the first loss of Jiajia food in the past ten years. Jiajia food said that in 2021, the condiment industry fell back. Affected by the impact of new retail channels on traditional channels, the sales revenue of traditional channels, which account for a large proportion of the company, decreased, resulting in the decline of overall revenue. At the same time, the company's purchase cost rose, the price of raw materials rose during the reporting period, the industrial profit was squeezed, and the cost pressure at the production end increased. However, the price of the company's products was raised only at the end of the year, and the overall gross profit margin decreased throughout the year. In addition, the actual controllers of Jiajia food, Yang Zhen, Xiao Saiping (Yang Zhen's spouse) and Yang Zijiang (Yang Zhen's son) were listed as dishonest Executees by Jinfeng District People's Court of Yinchuan city due to contract disputes. In other words, three members of the actual control family have become "Laolai". The huge loss of performance and the fact that people become "Laolai" undoubtedly cast a shadow on the future development of Jiajia food. Overall, in 2021, the performance of condiment enterprises showed a downward trend as a whole. Only Haitian flavor industry had a double increase in revenue and net profit, while other enterprises either increased revenue without increasing profit, or both revenue and net profit decreased, or suffered losses. The reasons for the decline in performance are mostly the increase in costs caused by the rise in the price of raw materials, superimposed by external factors such as the epidemic and weak consumption. In the face of cost pressure, many condiment enterprises have taken measures to raise prices, but the price increase can not completely solve the problem. At the same time, it also affects the sales volume and has a limited boost to the performance. Aware of this, condiment enterprises have continued to make efforts in product innovation and R & D. It is understood that in 2021, the R & D expenses of the above condiment enterprises increased, of which the R & D expenses of Haitian flavor industry reached 772 million yuan, with a large increase. The R & D investment of Zhongjing food was 32.4232 million yuan, a year-on-year increase of 25.77%. However, the condiment industry is relatively special, the product homogenization is serious, the research and development of new products has a long time, the verification process is cumbersome and many other difficulties, and the new products are easy to be copied by peers after they are listed. In this case, condiment enterprises are also constantly looking for new performance growth points. For example, Haitian flavor industry is accelerating the layout of vinegar and cooking wine. New production capacity of soy sauce and oyster sauce will be put into operation in 2022. In addition, Haitian flavor industry has also launched the grain, oil and rice flour track, launched edible oil products "oil commander" and "geographical imprint" series rice, and is actively investigating prefabricated dishes. Fuling pickled mustard has made great efforts in the high-end market and launched a thousand yuan pickled mustard gift box, but the market response is general. Fuling mustard has also launched a high-quality mustard gift box to upgrade the product packaging and mustard. Zhongjing food said that the company launched prefabricated vegetable products, focusing on "mushrooms + family banquet dishes". Recently, Hengshun vinegar industry said on the interactive platform that the company has actively developed and laid out a series of prefabricated vegetable products. It seems that under the influence of the epidemic and the housing economy, prefabricated dishes are increasingly favored by consumers, causing many condiment enterprises to enter the market one after another to "get a share". As the prefabricated dishes and condiments are relatively close in the industry, condiment enterprises also have certain advantages in cross-border prefabricated dishes. However, this is a new field after all, and there is also competition among enterprises specializing in prefabricated vegetables. If condiment enterprises want to occupy the market, they still need to make continuous efforts in product research and development. (Xinhua News Agency)
Edit：Li Ling Responsible editor：Chen Jie
Source：GPLP
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