On October 15th, the × Jianmen Annual Meeting, the of the New Catering Power Conference jointly sponsored by Youge Supply Chain and Jianmen, was held in Beijing × Youge Supply Chain Source Explosive Products Market. "Dark Horse of Kitchen Food" Rice Field participated in the event in October, and brand founder Wang Bing participated in the roundtable forum and talked about development with more than 1,000 leaders in the chain catering industry.
How can a food company seek market space in a differentiated way and achieve sustainable growth in a relatively mature track? Judging from the development trajectory of October Paddy and the recently disclosed results, he may be able to provide a reference development sample for the industry.
Dual drive, the upward curve is not easy to obtain
It is understood that October Paddy released its financial report for the first half of 2024 at the end of September, submitting a good performance "answer sheet", which attracted attention in the industry. According to the financial report, October Paddy will achieve revenue of 2.62 billion yuan in the first half of 2024, a year-on-year increase of 17.7%; The adjusted net profit was 149 million yuan, a year-on-year increase of 30.6%.
During the reporting period, October Paddy Field deeply cultivated existing categories such as pre-packaged high-quality rice, cereals, beans and dry goods products, and at the same time, broadened the multi-category product matrix, broadened the sales network, strengthened the business model of multiple brands with their own focus, and consolidated the supply chain management capabilities.
Steady has become the key word for the performance growth of paddy fields in October. Data from its prospectus: From 2020 to 2022, the company's operating income will be 2.327 billion yuan, 3.598 billion yuan and 4.533 billion yuan respectively, with a compound annual growth rate of 39.6%, far exceeding the industry average. According to the 2024 interim financial report, the company's revenue in the first half of the year was 2.62 billion, a year-on-year increase of 17.7%; Adjusted net profit was 149 million, up 30.6% year-on-year.
According to the financial report data, the company's corn product sales revenue increased significantly year-on-year, and its category innovation has achieved remarkable results. The corn has been made into a light food and snack fast-moving consumer goods, and many innovations have been made in the product form, and a variety of products such as corn cob, corn segment, corn kernels, and popcorn corn kernels have been launched successively. Focus on the corn business, so that it can successfully harvest a new growth curve.
In the current environment of economic cycle changes and intensifying market competition, there are only a handful of companies that can still maintain an upward curve. Only by passing the comprehensive strength test and the market test can an enterprise finally gain a firm foothold, and if it can also achieve outstanding results, it is even more commendable, fully reflecting the resilience, competitiveness and long-term development potential of the enterprise.
Consolidate the basic plate, and the performance of a single product is remarkable
The pressure on the consumer market, the rise in raw material prices, and the challenges of the macro environment have led to the collective poor performance of many listed grain and oil companies in the first half of 2024.
Looking at the October rice field financial report, if you look at rice products alone, the revenue during the reporting period was 1.707 billion yuan, a year-on-year decrease of 1.9%, mainly due to the impact of the rising cost of rice raw materials, the adjustment of rice sales prices and product mix, resulting in a decline in sales of rice with low gross margin and a decline in income. However, as a fast-growing kitchen staple food brand in China, October Rice has led the country in sales of Northeast rice for five consecutive years, serving a total of 130 million Chinese household users through all channels, and the accumulation of rice as a core business is still stable.
Looking at cereals, beans and other products with corn as the core, it achieved rapid growth during the reporting period, with revenue of 726 million, a year-on-year increase of 151.9%. Due to the rapid growth of consumer demand for food health, corn is widely recognized as a healthy coarse grain, and the trend of staple food is rising. Relying on the existing deep industrial chain precipitation and the number of users, the rice field launched corn products with new "food" generation labels such as convenient cooking, exquisite packaging, safety and freshness, which were favored by users and became the "dark horse" of the track.
At present, the October paddy corn category has become another 100 million-level single product, and it is still being deepened, in order to increase the blue ocean of healthy consumption.
Volatility grows, and long-term value is the key to success
Only good products can win a good market, good sales help enterprises grow steadily, and high-quality development of enterprises empowers high-quality products, which is a complete closed loop starting from ensuring product quality.
October Paddy adheres to high-quality agricultural production areas such as Northeast China and Inner Mongolia, makes efforts at the source through the layout of production areas, and invests hundreds of millions of yuan in five core grain producing areas in China to build modern factories and advanced equipment. "Iron also needs its own hardness", October Paddy continues to cultivate "internal strength", and is committed to providing consumers with high-quality kitchen food, laying a solid foundation for its rapid development.
It is important to have deep "internal strength", but both internal and external cultivation will make the comprehensive strength of the enterprise stronger. Recently, it has been noticed that online October Paddy TVC, posters, live broadcasts and other communication content, as well as offline airport screens, ladder media and other advertisements, this kind of continuous innovation on the marketing side, empowering the brand power to enhance the action, can fully stimulate the external brand effect.
Seeking increment in fluctuations is a natural law on the road of enterprise development, and it is also a "compulsory course" that all enterprises cannot avoid. Short-term fluctuations cannot represent the whole enterprise, and the continuous "hematopoietic" ability from this insight is where the long-term value of the enterprise lies.
The resilience and resilience of the rice fields in October have been revealed, from the stabilization of the basic plate of rice to the breakthrough of corn categories, and then to the systematic layout of both internal and external repairs, making its overall business structure more stable, more resistant to risks, and more certain factors for sustainable growth in the future.
If you take a long-term view, creating long-term value is bound to be the key to the sustainable development of the enterprise, and this ability has been glimpsed in October Paddy, and what kind of growth curve he will draw in the future is worth looking forward to.