A few days ago, Qiaqia Food, a leader in the leisure snack industry, released its first quarter report for 2024 to achieve recovery growth. Industry insiders believe that behind the good performance of Qiaqia Food in the first quarter is its continuous construction of a diversified product matrix, and "negotiating" the benefits to improve the channel construction. The essence is that the company has built a broad brand and channel moat. The inflection point of Qiaqia Food is imminent, and the future can be expected.
The first quarter performance was restorative
According to the data, in the first quarter of 2024, Qiaqia Food achieved revenue of 1.822 billion yuan, a year-on-year increase of 36.39%, and the net profit attributable to the parent company was 240 million yuan, a year-on-year increase of 35.15%. On the day of the announcement on April 30, Qiaqia Food opened up by more than 5%.
According to its recently released annual report, in 2023, Qiaqia Food will achieve a revenue of 6.806 billion yuan and a net profit of 805 million yuan. In the context of the overall recession of the leisure snack industry last year, Qiaqia Food sold 6.8 billion yuan, which is not easy.
Dong Qiudi (pseudonym), an investor who pays attention to the snack industry, said that at the end of last year, the sales of snack gift box products were hot, and the snack gift boxes of Qiaqia Food were even more popular, which directly drove the company's performance to pick up in the first quarter of 2024.
The life cycle of Qiaqia Food is very different from that of other snack brands. Dong Qiudi added that as a veteran snack company, Qiaqia Food has entered a mature period of brand development, and it is difficult for enterprises at this stage to have large performance growth, and it is not easy to maintain stable performance. In this context, one of the great advantages of Qiaqia Food is that it has built a strong association between brand and category.
According to the report of Zhongtai Securities, from the perspective of income, the growth rate of Qiaqia food nut business has picked up, and the overseas business has grown steadily; from the profit side, the cost dividend of Qiaqia food has gradually emerged, and the trend of cost reduction and efficiency increase is obvious.
"Negotiation" expands the multi-matrix at the same time
As a leader in the leisure snack industry, Qiaqia Food, which started from melon seeds and gradually expanded its business categories, has deeply laid out the nut category and realized the "multi-point flowering" of the product line.
In terms of melon seeds, Qiaqia Food's high-end melon seed product "Kwai Zhen" has achieved continuous sales growth by continuously optimizing products, adjusting product structure, carrying out circle penetration, and expanding new channels such as high-end membership stores and boutique supermarkets. The company also continues to cultivate new scenarios such as tea and catering through happy melon seeds and customized melon seeds.
In terms of nuts, the nut category of Qiaqia Food continues to focus on small yellow bags of daily nuts, and continues to extend flavor and functionalization, such as peach oolong daily nuts, green plum oolong daily nuts, sea salt milk cap daily nuts, etc.
For example, the daily nut gift box version of the rooftop box of Qiaqia Food has achieved rapid growth through continuous penetration of sinking markets such as the third and fourth lines. At the same time, Qiaqia Food has also increased the trial marketing of flavored nut products, such as durian cashew nuts, cucumber flavored cashew nuts, spicy crayfish flavored crispy cashew nuts, etc., and continuously improved and optimized the taste of products.
According to the report of Minsheng Securities, Qiaqia Food continues to focus on the two core categories of melon seeds and nuts, and the melon seeds have launched new flavored products, and the nuts focus on daily nuts & nut gift boxes. Looking forward to 2024, Qiaqia Food is expected to achieve steady growth, contributing to the performance elasticity with the return of melon seed prices to the normal range and the continuous release of scale effects.
Song Feifei, a researcher at Shenzhen Zhongwei Zhiyan Consulting Co., Ltd., said that the product line of Qiaqia Food has gradually penetrated from traditional melon seeds and nuts to lo-mei products, dried fruit products and other fields, forming a rich product matrix. Relying on the brand image of Qiaqia melon seeds, Qiaqia Food will further enrich its product categories in the future, coupled with its advantages in the supply chain of origin, the prospects of Qiaqia Food are good.
"Negotiation" to the benefits of the retail terminal
In terms of channels, Qiaqia Food has also actively expanded emerging channels such as mass sales snacks and new tea drinks, and has achieved initial results. In addition, its overseas channels have also achieved rapid growth.
According to the financial report, Qiaqia Food continues to explore the demand for new scenarios, with rapid growth in mass merchandising snack stores and membership stores, and active expansion of new scenarios and new channels such as TO-B group purchase business, catering channels, O2O, and nutritional catering business. The e-commerce channel Douyin business continues to make breakthroughs; Operate a private domain full membership system, and continue to increase income.
In response to investors on April 26, Qiaqia Food said that the company's mass snack channel has grown rapidly, and its revenue has increased from about 5 million yuan in January 2023 to about 30 million yuan in December 2023, and then to nearly 50 million yuan in January 2024. In 2023, the company's tax-inclusive revenue in the mass snack channel will be nearly 200 million yuan, and the company's revenue in the mass snack channel will be further increased in the future.
In the overseas market, the financial report shows that Qiaqia Food continues to deepen the Southeast Asian market, the channel penetration continues to deepen, and the company's overall overseas sales have recovered through continuous improvement of product strength and brand innovation and promotion.
According to the report of Zhongtai Securities, in 2024, Qiaqia Food will comprehensively carry out the channel intensive cultivation strategy: accelerate the development of third- and fourth-tier cities and county markets, and match new scenarios to accelerate the promotion of new channels such as mass sales snack channels and membership stores. Overseas continued to focus on the in-depth development of the Southeast Asian market, expanded overseas online channels, continued to improve the Vietnamese market, and made key breakthroughs in the Indonesian market. Overall, the inflection point of Qiaqia Food is imminent, and the future is promising.
Song Feifei mentioned that since last year, Qiaqia Food has gradually strengthened the layout of new tea drinks and mass sales snacks and other channels, and has achieved good results. On the one hand, Qiaqia Food has made up for the shortcomings of the channel, showing its brand image with higher visibility and enhancing consumer awareness. On the other hand, the new and old channels of Qiaqia Food complement each other, forming a coordinated development and saving the cost of channel expansion.
Dong Qiudi revealed that after years of deep cultivation, Qiaqia Food has formed an omni-channel layout from large supermarkets to small husband and wife stores, with dense distribution of outlets. Nowadays, Qiaqia Food is actively expanding new channels such as mass sales snacks and membership stores, and truly realizes seamless connection with consumers. This is beyond the reach of other snack brands in a short period of time, and it is also the fundamental guarantee for the long-term sustainable development of Qiaqia Food.
Source: China.com Food