on February 22, grain and oil giant Yihai Kerry Arawana Holdings Co.Ltd(300999) (300999) released its performance express for 2021. In 2021, the company achieved an operating revenue of 226.23 billion yuan, a year-on-year increase of 16.1%, a total profit of 6.18 billion yuan, a year-on-year decrease of 30.9%, a net profit attributable to the parent company of 4.13 billion yuan, a year-on-year decrease of 31.1%, and a net profit of 5 billion yuan after deducting non recurring profits and losses, a year-on-year decrease of 43.2%. The basic earnings per share is 0.76 yuan / share.
fourth quarter net profit fell by about 50%
Previously, Yihai Kerry Arawana Holdings Co.Ltd(300999) released the third quarterly report of 2021, which showed that the company achieved a net profit of 3.681 billion yuan in the first three quarters, a year-on-year decrease of 27.68%. Based on this calculation, the company’s single quarter net profit in the fourth quarter was 451 million yuan, a decrease of about 50% compared with 911 million yuan in the fourth quarter of 2020. In fact, Yihai Kerry Arawana Holdings Co.Ltd(300999) the single quarter performance of the third quarter of 2021 also showed a year-on-year decline of 65.86%.
For this performance, Yihai Kerry Arawana Holdings Co.Ltd(300999) explained in the announcement that in the kitchen food business, the production and operation cost of the company was higher than that in the same period last year due to the large increase in the cost of raw materials during the reporting period. Although the company raised the selling price of some products, it did not fully cover the rise in raw material costs, and the profit decreased year-on-year. In addition, the intensified market competition and the factors of weak consumption have greatly affected the sales volume of the company’s medium and high-end retail products;
At the same time, with the effective control of the epidemic in China during the reporting period, the recovery of China’s catering market and the gradual recovery of catering channels, the sales proportion of catering products with low gross profit margin in the product structure of the company’s kitchen food increased. The above factors led to the increase of sales and income of the company’s kitchen food, but the profit decreased.
In terms of feed raw materials and oil technology business, on the one hand, the income and profit increased due to the rise of market conditions during the reporting period. Among them, the profit of oil technology business increased significantly, but the soybean procurement and crushing volume decreased compared with the same period last year, and the crushing profit decreased; On the other hand, the derivative financial instruments for hedging soybean related businesses have incurred some losses, which are caused by avoiding the risk of price fluctuation of raw materials in the process of normal production and operation of the company, and are required for normal operation.
It is worth mentioning that the decline of net profit after deducting non-profit in Yihai Kerry Arawana Holdings Co.Ltd(300999) 2021 is higher than that of net profit. The company also explained that this is mainly due to the reduction of non recurring losses generated by derivative financial instruments that do not fully meet the requirements of hedge accounting in the reporting period.
seasoning oil products are making good progress
In terms of stock price performance, Yihai Kerry Arawana Holdings Co.Ltd(300999) has been in a state of continuous adjustment since 2021 after hitting a historical high of about 145 yuan at the initial stage of listing. At present, the latest stock price is on the line of 56-57 yuan, which has fallen by more than 60% compared with the original high.
Although the share price of fell, Yihai Kerry Arawana Holdings Co.Ltd(300999) is still a star enterprise concerned by the market and is dubbed “Youmao” by the market. According to the latest record of investor relations activities, Yihai Kerry Arawana Holdings Co.Ltd(300999) communicated with many shareholders at the extraordinary general meeting held on February 15 this year.
Investors first focus on the company’s future product price adjustment expectations. In 2021, in the face of the rising prices of raw materials, manufacturers of a variety of consumer goods, including soy sauce, vinegar, melon seeds, quick-frozen food and so on, have announced high-profile price increases.
Yihai Kerry Arawana Holdings Co.Ltd(300999) pointed out that the company adjusted the prices of different oils at the end of 2020 and from March to April 2021. Considering various factors such as raw materials, market conditions, market competitiveness and consumption power of various varieties, the price increases of different oils are different, and the overall price increases are about 10% ~ 15%.
“We adopt different pricing strategies for products from different channels. Taking oil as an example, the company’s catering and food industry channel products are mainly priced and sold synchronously according to the changes of market raw materials.” Yihai Kerry Arawana Holdings Co.Ltd(300999) pointed out that the company adjusted the price of some products last year, but the price rise can not fully cover the rise of raw materials. The price fluctuation range of raw materials of rice and flour products is relatively small. The company will first adjust the promotion and marketing expenses, and then consider whether to adjust the price.
In view of the current layout of condiment products, Yihai Kerry Arawana Holdings Co.Ltd(300999) said, the company’s seasoning products include sesame oil, pepper oil, rattan pepper oil, sesame paste, and so on, and soy sauce and vinegar products are also developed. The company’s seasoning oil products have made good progress. Taking sesame oil as an example, the company has a leading market share in China. At present, it is actively expanding the business of rattan pepper oil and pepper oil, as well as the business of seasoning oil in catering.
continue to expand the production capacity of soy sauce and vinegar
With regard to soy sauce, Yihai Kerry Arawana Holdings Co.Ltd(300999) admitted that it entered the market late. “Soy sauce is a taste product, and it is relatively more difficult to switch consumers’ stickiness and habits, so the training cycle for consumers in the early stage will be longer.” Unlike most leading enterprises in the industry, Yihai Kerry Arawana Holdings Co.Ltd(300999) chooses high-end black bean soy sauce as the starting point. Unlike most leading enterprises in the industry, the price is also slightly higher.
in terms of production capacity, Yihai Kerry Arawana Holdings Co.Ltd(300999) Wanzhuang soy sauce phase II project in Taizhou is under preparation, and the production capacity will double after completion. At the same time, the company is preparing to build a factory in Yangjiang, Guangdong, and plans to produce Cantonese soy sauce. In the future, the company will also adopt dual brand and dual strategy to develop soy sauce business. As for vinegar, Yihai Kerry Arawana Holdings Co.Ltd(300999) Liangfen vinegar factory in Shanxi is also expanding its production.
Recently, the concept of “prefabricated vegetables” has become a hot spot in the market. Yihai Kerry Arawana Holdings Co.Ltd(300999) said that the company’s central kitchen Hangzhou project is expected to have product output in March this year, with a wide range of products, including nutritious meals, bentos and other specific finished and semi-finished meal prefabricated vegetable products. In addition, in the food production Park, the company can process central kitchen products by itself, or introduce other central kitchen processing enterprises to realize resource sharing in the park, such as product storage, experimental research and development, public supporting facilities, logistics and transportation, sales channels and so on. In addition, the company will also introduce partners to jointly expand the central kitchen business.
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