Recently, Ligao Foods (300973.SZ), the company with the largest market share in the frozen baking industry, released its 2023 annual performance forecast, with an estimated annual revenue of 3.48-3.60 billion yuan, a year-on-year increase of 19.56%-23.69%. Compared with its revenue of 1.548 billion in 2019, the company has doubled its revenue.
"FMCG" learned that the announcement of neutral high food mentioned that during the reporting period, the company's frozen baking, cream, sauce marketing organizational structure was integrated, the proportion of dealer income of three production lines and double production lines increased, and at the same time, thanks to the effective introduction of the company's new products, as well as the good growth rate of supermarkets, catering and other channel businesses, the company's total revenue maintained steady growth. If we talk about revenue growth alone, the development of Ligao Foods in recent years may reflect the changes in the preferences of today's C-end bakery consumers.
The chairman of the board of directors of Ligao Foods (300973.SZ) is Mr. Peng Yuhui, and the general manager is Mr. Chen Hejun. As Sam's, Hema and other supermarket channels have begun to set up "on-site baking" modules in the venue, those semi-finished dough from suppliers such as Ligao, and then through the processes of Sam's master thawing, proofing, baking, etc., can basically replace the traditional perception of completely freshly baked shops made from 0 in terms of taste.
Legao Foods divides the channels into distribution, direct sales, retail and others, of which direct sales is mainly for large supermarkets. According to the 2023 interim report, the revenue of the supermarket channel in the direct sales segment increased by 78.47% year-on-year to 540 million yuan, which is the fastest growth rate among all channels. Overall, the proportion of direct sales revenue increased from 15.72% in 2019 to 34.47% in 2022.
Ligao has incurred four expenses in operation: 1) in order to reach dealers and consumers faster, the company has increased the number of transit warehouses, resulting in an increase in related logistics costs; 2) in order to expand its brand influence, the company has actively held dealer conferences and industry baking exhibitions, and business promotion expenses have increased; 3) in order to enhance product strength, the company has established a product center, increased research and development efforts, and research and development expenses have also increased; 4) the company has incurred an asset impairment loss of 28 million yuan due to the launch of new products and production capacity climbing.
Mr. Peng Yuhui, Chairman of Ligao, and Mr. Zhao Songtao, Vice Chairman of Ligao, agreed that the equity incentive fee is one-time and does not affect the company's fundamentals. Asset impairment loss is a fixed cost to a certain extent, which can be gradually diluted with the company's size, and the current increase in logistics costs has a great relationship with the company's implementation of a large distribution strategy, which can better provide services for large dealers, and with the greater the contribution of large dealers to revenue, the larger the single product model is deeper, and there is also room for optimization of logistics costs.
- END -