On April 29, Lushang Freda Pharmaceutical Co., Ltd. (hereinafter referred to as "Freda") released its first quarter report for 2024.
According to the financial report, from January to March 2024, Freda's operating income was 890 million yuan, a year-on-year decrease of 29.99%, the net profit attributable to the parent company was 59 million yuan, a year-on-year decrease of 54.35%, and the non-net profit attributable to the parent company was 52 million yuan, a year-on-year increase of 242.48%.
As of the announcement
Specifically, from January to March, the revenue of the cosmetics sector was 544 million yuan, an increase of 15.12% year-on-year, and the gross profit margin was 62.19%, the revenue of the pharmaceutical sector was 109 million yuan, a year-on-year decrease of 23.25%, and the gross profit margin was 54.90%, and the revenue of the raw materials and additives segment was 84 million yuan, an increase of 10.26% year-on-year, and the gross profit margin was 29.74%.
Judging from the revenue of the cosmetic leather sector in the past three years, although the overall revenue and net profit of Freda Group have declined, as a core participant in the industrialization process of hyaluronic acid in China, with the divestment of the real estate business and the transformation of beauty, it may enter a new development cycle under the strong pull of the cosmetics sector.
Dr. Yi Lian and Dr. Aier both increased
The main brand "Swift"
At present, Freda cosmetics sector has a number of cosmetics brands such as "Yilian", "Dr. Er", "Shanyan", "UMT", "Quanrun" and "Beirun", among which Yilian and Dr. Aier are the main brands, which have developed rapidly in recent years and have both entered the 1 billion scale club.
Among them, the Yilian brand has been upgraded from "specializing in ingredient positioning" to "expression of crowd efficacy", from "specializing in hyaluronic acid skin care" to "specializing in hyaluronic acid moisturizing and repairing", and continues to implement the strategy of large single products, spray 2.0 and bangbang cream have achieved substantial growth;
According to the financial report, in the first quarter, the two major brands of Yilian and Dr. Aier continued to grow rapidly, and their revenue achieved double-digit year-on-year growth. Among them, Yilian's revenue reached 200 million yuan, an increase of 17.45% year-on-year, and Dr. Aier's revenue reached 294 million yuan, an increase of 20.63% year-on-year.
In terms of channel construction, Freda adheres to the logic of the FMCG industry, taking online channels as the main channel, and at the same time focusing on offline supermarkets and cutting-edge beauty retail stores.
Take, for example, the two major brands. From January to March, Yilian increased the layout of live broadcast channels, did not close during the Spring Festival, and laid out 38 activities in advance, and drove sales growth by the two-wheel drive of Dabo + self-broadcasting;
It is worth mentioning that Freda will continue to promote the strategy of large single products, strengthen the advantages of the two main brands, assist small and medium-sized brands to break through, and promote the upgrading of the "5+N" brand development strategy.
"Enter" the recombinant collagen track
The landscape is changing
In the past, Freda cosmetics sector was guided by the "4+N" brand development strategy, focusing on hyaluronic acid skin care, microecological skin care, precision skin care, oil nourishment and other scientific and technological skin care tracks, and has built brand and technical barriers.
According to public information, Freda has the advantages of core raw materials such as hyaluronic acid, polyglutamic acid, fullerene, lavender essential oil, ectoin, tremella polysaccharides, etc., and has a number of patented ingredients such as silanized hyaluronic acid and fermented brown algae.
In December last year, Freda invested more than 100 million yuan in the recombinant collagen production base and officially put into operation, and launched the recombinant collagen medical beauty brand Kemi, stirring the recombinant collagen track.
Today, Freda has incorporated Kemi Key C into its development plan, and upgraded the "4+N" brand development strategy to the "5+N" brand development strategy, making great strides towards the 100 billion market. This is also known as Freda's new starting point for exploring the field of medical aesthetics.
Relevant data show that in 2022, the market size of collagen-based functional skin care products in mainland China will be about 9.4 billion yuan. It is estimated that by 2027, the market size of recombinant collagen in mainland China will reach 108.3 billion yuan, with a permeation rate of 62.3%, becoming the main collagen application component.
It is worth mentioning that there are not many companies that have mastered the technology of "recombinant collagen", and the market pattern of recombinant collagen is relatively fragmented.
Freda has also revealed that in the next 5-8 years, Freda cosmetics will build a "beauty + medical beauty" double beauty pattern to promote industrial upgrading.
With the advent of the era of scientific skin care, large manufacturers with advantages in technology, raw materials and scientific research will undoubtedly draw a new growth curve.
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