The superposition of global epidemic, rising raw material costs and other factors not only puts pressure on the industrial chain as a whole, but also highlights the resilience of enterprises.
As one of the largest Shenzhen Agricultural Products Group Co.Ltd(000061) and food processing enterprises in China, Yihai Kerry Arawana Holdings Co.Ltd(300999) ( Yihai Kerry Arawana Holdings Co.Ltd(300999) . SZ) recently released its 2021 performance report. Its revenue and other data performance and the reasons behind it have become a sample of the steady development of enterprises in the field of agricultural and sideline food.
last year’s revenue increased by 16.1% year-on-year
Yihai Kerry Arawana Holdings Co.Ltd(300999) 2021 performance report shows that the company achieved an operating revenue of 226.23 billion yuan in 2021, with an annual increase of 16.1%. Meanwhile, the total assets at the end of the reporting period reached 207.25 billion yuan, an annual increase of 15.7%.
In the context of lower than expected consumption recovery, Yihai Kerry Arawana Holdings Co.Ltd(300999) in the original large volume, it is not easy to continue to achieve double-digit growth. It has also become the first A-share listed company with a revenue of more than 200 billion yuan in the food industry.
China Securities Co.Ltd(601066) believes that the revenue growth rate of Yihai Kerry Arawana Holdings Co.Ltd(300999) in the fourth quarter of last year was further higher than that in the second and third quarters. One important reason is that the company has strong channel and brand power, and the product attribute of the company is rigid demand, which is less affected by the epidemic. The company continues to increase its penetration and promote the sales growth.
According to the top 50 brand value list of Chinese food and beverage listed companies in 2021, YIHAI KERRY Yihai Kerry Arawana Holdings Co.Ltd(300999) ranks 2nd with a brand value of 130298 billion yuan According to the latest data of the world brand laboratory in 2021, ” Yihai Kerry Arawana Holdings Co.Ltd(300999) ” brand is worth about 54 billion yuan. It is a well-known comprehensive food brand.
In addition to strong channel power and brand power, the steady growth of Yihai Kerry Arawana Holdings Co.Ltd(300999) performance is inseparable from the investment and attempt of persisting in innovation for a long time, constantly enriching the kitchen product structure, expanding the product matrix and enhancing the ability of new business development. In recent years, Yihai Kerry Arawana Holdings Co.Ltd(300999) relying on its strong technical R & D capability, combined with its own raw material procurement and channel advantages, has achieved a breakthrough in gradually expanding its product line from rice flour oil to condiments, yeast and daily chemical products, and extended its tentacles to the field of prefabricated dishes in the central kitchen.
China Securities Co.Ltd(601066) also said that he was optimistic about the long-term development of the company. At present, the condiment and central kitchen business is developing well, and the production capacity of condiment and soy sauce continues to increase. Last year, the fund was widely distributed in the field of Cantonese style soy sauce. At the same time, the central kitchen of Hangzhou was also gradually completed. It is expected to launch products in the two quarter and continue to be optimistic about the layout of the company in the field of kitchen food.
At the same time, benefiting from the huge scale effect, Yihai Kerry Arawana Holdings Co.Ltd(300999) has built a strong competitive barrier in the field of grain and oil, and its bargaining power as a leader has become more and more prominent, effectively ensuring the steady growth of its core business.
Recently, the epidemic situation in Shanghai and other places has been repeated, and the market demand for rice flour oil has increased significantly. The person in charge of YIHAI KERRY Yihai Kerry Arawana Holdings Co.Ltd(300999) Shanghai said that the company supplies about 800 tons of rice flour oil to the Shanghai market every day. At present, the factory operates normally, and the inventory of equipment, personnel and raw materials is sufficient. Even if there is market looting and hoarding, it can continue to produce and ensure supply, fulfilling the commitment of “stabilizing prices, ensuring supply and not degrading quality”.
raw material price increase affects profit
According to the data of the General Administration of customs, in 2021, the average import price of soybean was 555 US dollars / ton, up 41% from 394 US dollars / ton in 2020, accounting for 58.6% of the total grain import. International wheat prices hit a ten-year high, and China’s wheat prices also hit the highest year since 2014. Affected by repeated global epidemics, extreme climate, energy shortage and other factors, the prices of rice and oil raw materials also generally rose.
The sharp rise in the price of raw materials will inevitably affect the profits of Yihai Kerry Arawana Holdings Co.Ltd(300999) . According to the performance report of 2021, Yihai Kerry Arawana Holdings Co.Ltd(300999) operating profit was 6.43 billion yuan, with an annual decrease of 27.9%; The total profit was 6.18 billion yuan, with an annual decrease of 30.9%; The net profit attributable to the parent company was 4.13 billion yuan, with an annual decrease of 31.1%.
Yihai Kerry Arawana Holdings Co.Ltd(300999) said in the annual report that during the reporting period, the production and operation cost of the company was higher than that of the same period last year due to the large increase in the cost of raw materials. Although the company raised the price of some products, it did not fully cover the rise in raw material costs, resulting in a year-on-year decline in total profits.
However, as a livelihood product, rice flour oil itself has the characteristics of rigid demand and price elasticity, which can keep the main business of Yihai Kerry Arawana Holdings Co.Ltd(300999) growing steadily. At the same time, Yihai Kerry Arawana Holdings Co.Ltd(300999) has been opening up and extending the industrial chain for many years, focusing on continuously enhancing the anti fluctuation ability of the main industry through technology research and development. Among them, Yihai Kerry Arawana Holdings Co.Ltd(300999) has a strong ability to push through the old and bring forth the new through long-term focus on the research and development of rice flour oil. In the past two years, it has not only launched a series of “zero trans fat” edible oil products for healthy life, but also new diversified products such as local characteristic rice and functional noodles, meeting consumers’ needs for nutrition and health and increasing diversification, and effectively improving the added value of the company’s overall products.
While actively expanding its business scope, Yihai Kerry Arawana Holdings Co.Ltd(300999) is also reducing production, logistics and marketing costs as much as possible through digital investment and management optimization, so as to create profit increment.
With regard to the future trend of raw material price and supply, according to the guidance of recent policies, China’s soybean output is expected to continue to increase in 2022, so as to provide a stronger guarantee for agricultural and sideline food processing enterprises such as Yihai Kerry Arawana Holdings Co.Ltd(300999) in raw material procurement.
With the continuous implementation of the combination of “stable growth” of the economy, the consumer market will usher in a stronger recovery, which will not only bring more sufficient power to the upgrading of consumption, but also bring greater profit space to the food giants who pay attention to the long-term layout.
cut into the central kitchen prefabricated dishes
In addition to consolidating the main business and constantly enriching the kitchen product matrix, Yihai Kerry Arawana Holdings Co.Ltd(300999) also aims at the new track and seizes the right time to enter the field of prefabricated dishes in the central kitchen.
“With years of deep cultivation in the food and Shenzhen Agricultural Products Group Co.Ltd(000061) fields, we have insight into the development potential of China’s catering prefabricated vegetable market.” Tu Changming, director of YIHAI KERRY Yihai Kerry Arawana Holdings Co.Ltd(300999) public affairs department, said during the Expo last year that with the acceleration of modern people’s work rhythm and the change of concept, consumers have stronger and stronger demand for convenient diet and nutrition, and the prefabricated dishes closely related to the takeout industry have begun to become a dazzling star track.
The gradual improvement of cold chain technology has provided conditions for the prefabricated vegetable industry. The accelerated home consumption driven by the epidemic has pushed this industry to the wind. AI media consulting data show that the scale of China’s Prefabricated vegetable market is expected to maintain a growth rate of more than 20%, and is expected to exceed 510 billion yuan in 2023.
According to the data of China business intelligence network, the market scale of China’s Prefabricated vegetable industry reached 252.7 billion yuan in 2020, with an average annual compound growth rate of 28.8% from 2017 to 2020; It is estimated that the market scale of China’s Prefabricated vegetable industry will further reach 415.15 billion yuan in 2022, with a year-on-year increase of 32.4%. In the field of group meal with great potential for prefabricated dishes, the market share and market scale have also reached a new high in 2020. Among them, the market scale is close to 1.7 trillion yuan. It is expected that the market scale of group meal will exceed 3 trillion in 2025, and the growth rate is far higher than that of the overall catering industry.
At present, China’s Prefabricated vegetable industry chain is mainly composed of upstream raw material supply, midstream factory processing and downstream b-end and C-end consumers. According to the analysis of AI media consulting, the top three needs of b-end users of prefabricated dishes are: reducing loss, reducing process and saving kitchen space. The main demands of C-end consumers are time-saving, healthy and cost-effective Sinolink Securities Co.Ltd(600109) ‘s research report suggests that prefabricated vegetables help meal enterprises reduce costs and increase efficiency, and the application prospect is broad.
For Yihai Kerry Arawana Holdings Co.Ltd(300999) , cutting into the prefabricated dishes in the central kitchen will help enterprises better release their comprehensive strength and advantages accumulated in the field of food science and technology, and is expected to open a new blue ocean of business.
The access threshold of the central kitchen industry is high, and the requirements for many factors such as heavy asset operation, raw material cost, R & D, standardization, scale, distribution and channels are not low. As an industry leader focusing on the field of kitchen food for a long time, Yihai Kerry Arawana Holdings Co.Ltd(300999) has the synergy of the whole industrial chain running through the upstream and downstream, and has also laid a complete channel network throughout the country, which is conducive to promoting the rapid development of the central kitchen prefabricated food business and maximizing the intensive effect of capital. It can be said that Yihai Kerry Arawana Holdings Co.Ltd(300999) has the first mover advantage in terms of technology research and development or operation and sales, and will contribute new growth points to the enterprise through the layout of this new track.
At present, the central kitchen project of Yihai Kerry Arawana Holdings Co.Ltd(300999) in Hangzhou is in the trial production stage, and the latest progress has attracted the attention of the market and investors.
