Financial reporter Liu Jian
After the annual report recorded a decline in revenue and net profit, Fuling mustard, a leading mustard stock, fell again in revenue and net profit in the recently released 2024 semi-annual report. According to the semi-annual report, in the first half of the year, the company achieved revenue of 1.306 billion yuan, a year-on-year decrease of 2.32%, and the net profit attributable to the parent company was 448 million yuan, a year-on-year decrease of 4.74%.
According to the data, this is the second consecutive year that the company's interim revenue and net profit have declined year-on-year. According to the data of the first quarter of this year, the company achieved revenue of 749 million yuan, net profit attributable to the parent company of 272 million yuan, Fuling mustard revenue in the second quarter fell by 3.4% year-on-year, and net profit fell by 15%.
In the first half of the year, the proportion of mustard revenue increased, and the revenue of radish fell sharply
Fuling mustard is mainly engaged in the development, production and sales of convenience foods such as mustard, food, pickles, seasonings, mustard sauce and other accompaniment dishes. In the industry, the company's products have a high market share, and its "Wujiang" brand has a high reputation and reputation.
In the first half of the year, among the main products of Fuling mustard, except for the revenue of mustard, which increased slightly, other products declined to varying degrees. In other words, in the first half of the year, the proportion of the company's mustard products increased, while the support of other categories of products for the company was declining, and the company's over-reliance on mustard has not changed.
Wujiang mustard is the company's main product, the first half of the mustard revenue of 1.118 billion yuan, a year-on-year increase of 0.49%, accounting for 83.19% of the revenue increased from 83.19% in the same period last year to 85.58%, but the operating cost increased by 5.94%, and the gross profit margin fell by 2.36%.
Kimchi revenue fell 6.24% year-on-year, and gross profit margin decreased by 5.09%. The revenue of radish products declined the most, reaching 39.42%, and the gross profit margin decreased by 3.87%. The company said that the company implements sales-based production, arranges production and transportation delivery according to the order situation, and the company's radish product promotion investment decreased during the reporting period, and the sales volume decreased year-on-year.
From a regional point of view, the revenue of the South China sales region was 363 million yuan, a year-on-year increase of 9.12%, and the proportion of revenue also increased to 27.79%, continuing to act as the main revenue force. In addition, the sales areas in North China and Northeast China also achieved growth. The revenue of the East China, Central Plains and Northwest sales regions all fell by more than 10%.
It is worth noting that in the first half of the year, the company's export business achieved revenue of 27.5837 million yuan, a year-on-year increase of 25.01%, accounting for 2.11% of revenue, which is still small. However, the operating cost of the export business increased by 28.78%, outpacing the revenue growth rate, and the gross profit margin also fell by 2.73%.
The number of dealers decreased by 424, and the accounts receivable increased by 837.72%
It is worth noting that the company is tightly controlling fees and costs. The sales expenses in the first half of the year were 159 million yuan, a year-on-year decrease of 16.23%. Among them, the marketing fee decreased by 10.86%, and the brand promotion fee decreased by 86.24%. Fuling mustard also adjusted the company's organizational structure, and the group's first-level organizational structure was reduced from the original 32 to 24.
In the first half of the year, in order to strictly control prices and rectify market order, the company optimized and cleaned up the dealers with unreasonable layout and channel conflicts. In the first half of the year, the company's dealers decreased by 424, including 178 in South China alone, 81 in Central Plains and 63 in East China. The company plans to strengthen the dynamic management of distribution channels and improve the conditions for investment access, and the current dealer confidence is showing a trend of recovery.
The company also announced on August 30 that in order to further strengthen and standardize the company's management, optimize business processes, and improve the company's management level and operational efficiency, the company has also optimized and adjusted the organizational structure, and the group's first-level organizational structure has been reduced from the original 32 to 24 after the adjustment, which can achieve flat management and maximize efficiency under the group.
In the face of fierce competition in the market, in order to improve competitiveness and market share, the company gave large customers a moderate credit line, which also led to a significant increase of 837.72% in the company's accounts receivable in the first half of the year, the company recently said on the interactive platform that the company is to ensure the quality of dealer qualifications and receivables, according to the actual needs of dealers and sales needs to give the corresponding credit line, and at the end of the year to recover, the accounts receivable at the end of the reporting period increased compared with the beginning of the year, is the customer used the quota during the reporting period.
Fuling mustard also said in the semi-annual report that the main raw materials of green cabbage head and semi-finished mustard were affected by market supply and demand, and the prices in the first half of the year decreased by about 32% and 26% respectively compared with 2023. However, the acquisition of this year's cabbage pickled in May and June, the cost advantage in the first half of the year is not obvious, in the second half of the year with the use of low-cost raw materials, the company's profit or will be more significantly improved.
The price of mustard products has risen, and production and sales have been declining in recent years
Founded in 1988, Fuling Mustard was listed on the Shenzhen Stock Exchange in 2010 and is headquartered in Chongqing. As the only listed company in the mustard industry, Fuling mustard has a high market share, and the company has the right to set prices in the industry. Public information shows that with the development of Fuling mustard is synchronized with the rise in product prices, the company has gradually adjusted the price of products since January 2008, after 13 years from 0.5 yuan into the "3 yuan era", the price has risen to 6 times. At present, in some offline small supermarkets, the price of Fuling mustard small packages is between 3 yuan and 4 yuan per bag.
The performance of mustard products has clearly encountered a bottleneck. From the perspective of production and sales, the overall decline is underway, and the output of the company's mustard products from 2021 to 2023 will be 134,800 tons, 118,200 tons, and 110,200 tons, respectively, a year-on-year decrease of 2%, 12.31%, and 6.60%; From 2021 to 2023, the sales volume of mustard products will be 134,800 tons, 117,800 tons, and 113,300 tons, respectively, a year-on-year decrease of 1%, 12.61%, and 3.82%. In terms of revenue, the revenue of mustard products from 2021 to 2023 will be 2.226 billion yuan, 2.175 billion yuan, and 2.076 billion yuan respectively, a year-on-year decrease of 2.31% and 4.56% in 2022 and 2023, respectively. The decline in performance is not only due to the growth of raw material prices, but also the slowdown in demand.
In the secondary market, the share price of Fuling mustard in 2020 exceeded 42 yuan / share, and as of the close of trading on September 11, the company's share price was 12.26 yuan / share, a decline of more than 7 percent, and the total market value exceeded 13.9 billion yuan.