On April 30, milk tea leader Xiangpiaopiao Food Co.Ltd(603711) released the performance report of 2021 and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 3.466 billion yuan, a year-on-year decrease of 7.83%; The net profit attributable to the parent company was 223 million yuan, a year-on-year decrease of 37.9%. In the first quarter of 2022, the operating revenue was 496 million yuan and the net profit attributable to the parent company was – 59.677 million yuan.
As for the decline in revenue, the company explained that affected by the epidemic, all localities promulgated the “local new year” policy, which restrained the festival consumption of the company’s brewing products to a great extent; At the same time, the company insists on benign interaction and common development with dealers, and the stock level of distribution channels is more stable. According to the annual report of the end of December 2021, the vitality of tea brewing channels has increased year-on-year. For the decline in net profit, the company explained that it was mainly due to the significant increase in the cost of raw materials compared with the same period last year. The company has adjusted the price of some brewing products since February 1, 2022. It is expected that the product price of the sales terminal will be adjusted in place in the second quarter.
Xiangpiaopiao Food Co.Ltd(603711) relevant person in charge said that as the leading brand of brewing milk tea in China, the company maintained the first market share of cup brewing milk tea for 10 consecutive years from 2012 to 2021. It is reported that although the whole food and beverage industry has been impacted by the sharp rise in the price of upstream raw materials, the company’s brewing milk tea sector still maintained a gross profit margin of 38.44% in 2021.
Nowadays, “health” has become a major upgrading trend in the food and beverage industry Xiangpiaopiao Food Co.Ltd(603711) is actively following this trend, promoting the healthy and younger upgrading of brewing products and creating new growth drivers. According to the annual report, based on the concept of healthy products, the company selected high-quality milk powder, health preserving tremella, cheese and other healthy ingredients, upgraded them on the basis of traditional brewing milk tea, launched “Bobo milk tea” and “Zhenru tea” products in the fourth quarter of 2021, and conducted trial sales in e-commerce channels. The sales revenue of the products in the first quarter of listing was nearly 20 million yuan.
In addition, in 2021, the company will test the field of “Pan brewing” and launch products such as “milk tea self heating pot”. It will continue to optimize according to market feedback and explore medium and long-term market opportunities in the field of Pan brewing. At the same time, the company cooperates to develop the high protein ready to drink market for people with high protein needs such as fitness and substitute meals through the “lenbody” brand. At present, the company has completed the R & D and trial production of relevant products and entered the trial sales stage of e-commerce.
The relevant person in charge of the company said that as an important part of “two wheel drive”, juice tea has always been the second growth curve created by Xiangpiaopiao Food Co.Ltd(603711) with all its strength. Public information shows that in 2021, the company’s fruit juice and tea products achieved an operating revenue of 556 million yuan, a year-on-year increase of 6.43%; In the first quarter of 2022, the sales revenue of fruit juice tea reached 147 million yuan, up 8.37% year-on-year, showing an upward trend against the trend.
The company said that on the one hand, the company actively created healthier drinks, upgraded the product formula of cup juice tea, and increased the juice content to more than 25% while adding sucrose 0, so as to make MECO juice tea healthier and taste better; On the other hand, after years of practice, the company has explored a more suitable marketing and promotion strategy for juice tea. In 2021, the company focused on the core consumer group of students and the origin channels with high user matching such as Shengeng school and CVs, realizing the sales growth of MECO products. According to the annual report data, the distribution of MECO products in the first tier cities increased by 29.7% year-on-year, the distribution in the second and third tier cities increased by 25.8% year-on-year, and the dynamic sales of origin channels increased by 80%.
In addition, in 2021, the company took Wuhan as the pilot city to build a model city of MECO products, launched rich marketing activities around the origin channels, and improved the sales volume and influence of MECO products. In 2021, the revenue of MECO products in Wuhan increased by 61.5% year-on-year, and the sales revenue in the first quarter of 2022 increased by 37.59% year-on-year, showing a high growth trend.
