On March 9, Ganso Co.Ltd(603886) ( Ganso Co.Ltd(603886) , SH) released the performance express of 2021. The express showed that during the period, the company achieved an operating revenue of 2.592 billion yuan, a year-on-year increase of 12.52%, and a net profit of 340 million yuan, a year-on-year increase of 13.27%.
The reporter of the daily economic news noted that from the performance of last year’s single quarter, the profit in the first quarter turned from loss to profit, the revenue in the second quarter increased by 15% year-on-year, the profit growth slowed down in the third quarter, and the revenue in the fourth quarter exceeded 500 million yuan for the first time. It can be seen that while the performance improved, the company is further smoothing the quarterly difference, This means that the promotion of cake business and the focus of online channels since 2021 have weakened the company’s dependence on sales in the third quarter.
cake business boosts annual performance
In terms of products, cake business and Chinese and Western pastries are the main products of Ganso Co.Ltd(603886) . The company said that in 2021, the company focused on the promotion and marketing of cakes, launched cakes with corresponding themes according to festivals and various consumption scenes, and vigorously promoted them in the form of online platform publicity and offline flash stores.
According to the company’s 2021 semi annual report, Ganso Co.Ltd(603886) last year focused on the upgrading of cake products and created a number of dream fulfillment scenes during its 40th anniversary. For example, in combination with many time nodes such as Valentine’s day, mother’s day, nurse’s day and children’s day, we will launch theme cakes such as wrapping your love, writing your heart and flying into the sky, which are in line with the current hot spots, making consumers feel more modern and use more diversified scenes.
Last September, Ganso Co.Ltd(603886) general manager Zhang Yitao once said at the performance briefing: “the cake business has become a new growth point of the company’s performance this year. In the second half of the year, the company continues to pay attention to the main business operation, create Mid Autumn Festival products according to the three seasons, and continue to develop cake and other conventional products in the follow-up.”
From the operating data of each quarter, based on the promotion of new business, the cake business increased by 44.27% and 28.56% year-on-year respectively in the first half and the third quarter of 2021; Based on the refinement of seasonal SKU, in the first half and third quarter of 2021, the Chinese and Western pastry business (including moon cakes and zongzi) increased by 9.21% and 6.62% respectively year-on-year, which was significantly lower than that of cake business.
In terms of operating costs, in the first half of 2021, the company said that the increase of costs was based on the increase of operating revenue, while the change of product sales structure led to the decrease of cost rate, and the increase of costs was actually lower than that of revenue. Investors are more concerned about the impact of the rise in raw materials. The company said that the main raw materials purchased by the company are flour, oil, sugar and eggs. The relevant grain and oil prices are prone to fluctuate due to the harvest quality, weather changes, market supply and demand of that year.
“If the purchase price rises significantly, it will put some pressure on the gross profit margin of the company’s products, but this is one of the key points for the company to optimize the information-based production plan. Through the scientific management of the production plan, reasonable procurement and efficient output will help the company achieve the balance between price and profit and give full play to its bargaining advantage.” Ganso Co.Ltd(603886) said that it would comprehensively consider the price increase according to the cost of raw materials and market research feedback.
drainage line offset store income is limited
Insiders said that Yuanzu’s performance in 2021 had a turning upward trend. According to the products, Yuanzu’s cake business continued to maintain a relatively rapid growth, while the Chinese and Western pastry business, which accounted for the largest proportion, grew steadily, which was consistent with the company’s strategy of vigorously developing the cake business and smoothing the quarterly difference of performance. From the perspective of different channels, The higher increase of online revenue than offline reflects that the company is breaking the number and regional restrictions of offline physical stores.
According to the latest disclosed channel data, by the end of June 2021, Ganso Co.Ltd(603886) had opened 699 stores nationwide, including 576 Direct stores and 123 franchise stores. In the third quarter of 2021, under the influence of various factors such as the change of customers’ consumption habits, the channel sales of stores that contribute greatly to the revenue fell by 7.25% year-on-year, while the sales of e-commerce increased by 63.86% year-on-year, accounting for 39.23% of the group’s main revenue,
Zhang Yitao said that with the popularity of e-commerce, the development of home distribution business and the change of consumer habits, the performance of online business has gradually become prominent. The company actively layout and develop online business, steadily expand offline stores, break through Wuxi Online Offline Communication Information Technology Co.Ltd(300959) business barriers and realize coordinated development in the same step.
The company mentioned that in 2021 Ganso Co.Ltd(603886) by establishing a social customer relationship management system to channel to online stores, create exclusive online stores and one-to-one customer housekeeper services, comprehensively integrate the resources of major online platforms, promote multi-channel seamless cooperation and fission marketing, promote the all-round transformation of marketing tools and communication methods, and finally achieve performance growth.
It can be seen that the company is taking online business as the main driving force for future performance growth. As for the layout of online channels, Ganso Co.Ltd(603886) Board Secretary Shen huizeng said that the company continues to dig into e-commerce platforms such as wechat, tmall, JD, meituan, hungry and other takeout platforms, as well as other online channels including word-of-mouth, to make accurate user analysis for consumers, According to the user habits and market positioning, make resource allocation, optimize the platform business model and user experience fluency, so as to realize the docking and circulation of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels.
At the same time, the reporter noted that the company’s operating cash flow was in a stable growth state. At the end of the third quarter of 2021, the contract liabilities increased by 140 million yuan to 850 million yuan month on month, and the sales of cards and bonds increased rapidly Founder Securities Co.Ltd(601901) analysts pointed out in the quarterly research report that due to seasonal factors, the company’s quarterly performance fluctuates significantly, and there are few comparable companies, and the market attention is not high. However, since the company was listed in 2016, after the test of epidemic and online transformation, the performance has increased steadily. However, it should be noted that the opening of stores does not meet expectations, the growth of single store efficiency is not obvious, and the competition is intensified The increase of card coupon discount leads to the increase of expense rate and other risks.
