Yihai Kerry Arawana Holdings Co.Ltd(300999) : the product cost increased sharply, and the net profit in the first quarter decreased by 92.71% year-on-year

Yihai Kerry Arawana Holdings Co.Ltd(300999) ( Yihai Kerry Arawana Holdings Co.Ltd(300999) ) disclosed the first quarter report on April 29. During the reporting period, the company achieved an operating revenue of 56.536 billion yuan, a year-on-year increase of 10.68%; The net profit was 114 million yuan, a year-on-year decrease of 92.71%; The basic earnings per share is 0.02 yuan. In the first quarter, the prices of the company’s main raw materials such as soybean, soybean oil and palm oil rose rapidly and sharply, resulting in a sharp rise in product costs. Although the company raised the prices of some products, it did not fully cover the rise in raw material costs, and the gross profit margin of the company’s main products decreased significantly year-on-year. In addition, due to the impact of the multi-point spread of the epidemic in China on logistics and transportation, terminal sales, catering, etc., combined with the weak economy, sluggish consumption and intensified market competition, the sales volume of kitchen food of the company decreased year-on-year in the first quarter of 2022, and the profits of medium and high-end retail products were greatly affected.