Following the announcement of price increases by soy sauce, melon seeds, milk and other food officials, Xiangpiaopiao Food Co., Ltd. also announced that it was about to raise prices.
On January 4, Xiangpiaopiao issued an announcement that in view of the continuous rise in the costs of major raw materials, labor, transportation, energy and so on, in order to better provide dealers and consumers with high-quality products and services, and promote the sustainable development of the market and the industry, after the company's research and decision, the company's solid brewed milk tea (including classic series, good material series) product prices were adjusted, and the price increase of the main products ranged from 2% to 8%, and the new price was implemented according to the price adjustment notice of each product from February 1, 2022.
According to public information, Xiangpiaopiao was established in 2005 and specializes in the research and development, production and sales of milk tea products. The company landed on the Shanghai Stock Exchange on November 30, 2017, becoming the first listed company in the domestic milk tea industry.
Financial data show that in the first three quarters of 2021, Xiangpiaopiao achieved revenue of 1.974 billion yuan, an increase of 4.29% year-on-year; net profit attributable to shareholders of listed companies was 39.3955 million yuan, down 11.45% year-on-year. According to the product classification, in the first three quarters of 2021, xiangpiaopiao brewing revenue was 1.412 billion yuan, an increase of 9.05% year-on-year; ready-to-drink revenue was 531 million yuan, a year-on-year decrease of 7.56%.
As of January 4, 2022, Xiangpiaopiao closed at 16.77 yuan per share, with a total market value of 6.961 billion yuan, and the market value shrank by about 8.75 billion yuan from the historical high.
Zhu Danpeng, an analyst in the Chinese food industry, believes that it is inevitable that Xiangpiaopiao's main business will continue to lose money, because its overall aging situation is more serious. From brand aging, product aging, to channel aging, team aging, customer aging, scene aging, system aging, Xiangpiaopiao has too many problems, although it has also launched some new products, but these new products are not enough to support the future development of Xiangpiaopiao. And on the whole, the punching class is still the main part of Xiangpiaopiao, but the entire punching class has fallen into the ceiling effect, and has also fallen into the cycle of consumption fatigue.
Can the price increase bring performance growth to Xiangpiaopiao? Xu Xiaoheng, an investment and financing expert, believes that price increases can alleviate the pressure on costs, and it is difficult to boost performance growth in essence. Xiangpiaopiao also admitted in the announcement that the price adjustment of some products may have a certain impact on the market share of the company's products, coupled with the rising cost factors, the price adjustment of the product does not necessarily make the company's profits grow, and the impact of the price adjustment on the company's future performance is uncertain.
"Under the impact of the whole new Chinese tea, the future space of Xiangpiaopiao will be further squeezed, and enterprises must now figure out where the future development path is, and then choose some tracks according to their actual situation," Zhu Danpeng said.
Image source: Xiangpiaopiao's official website
These will also increase prices
In addition to Xiangpiaopiao, Shanghai Hairong Food Technology Co., Ltd., the "first share of cream", also issued an announcement on January 4 that in view of the continuous rise in the cost of major raw materials and accessories, the company decided to adjust the ex-factory price of some products, ranging from 5% to 8%, and the new price was implemented on March 1, 2022. It is understood that the food produced by Hairong Technology includes feiqinghua cheese cream, Jincai with meal jam and so on.
In addition, Panda Dairy Group Co., Ltd. also announced that in view of the continuous rise in the cost of the company's main raw materials, packaging materials, labor, transportation and other costs, after the company's research and decision, the ex-factory price of the company's main condensed milk-related products will be adjusted, with an adjustment range of 3%-10%, and the new price will be implemented on January 1, 2022. It is understood that the food produced by the company includes panda condensed milk, mozzarella cheese, panda light cream, coconut milk and so on.
The reporter found that since the second half of last year, listed companies in many fields such as condiments, beverages, snack foods, processed foods, and even daily necessities have issued price increase letters, including Fuling Squeezed Vegetables, Xuetian Salt Industry, Hengshun Vinegar Industry, Anjing Food, Qiaqia Food, Haitian Flavor Industry, Qianhe Flavor Industry, Zhongju High-tech, Zhongshun Jierou, Angel Yeast and a large number of large and small leaders in various subdivisions of the industry have joined the ranks of price increases.
The reasons for the price increase are mostly due to the continuous rise in the cost of raw materials, labor, energy, transportation, etc., in other words, the cost rise is too high to erode profits and have to increase prices.
Source: Red Star News, Beijing Business Daily, Qilu Evening News