Joyvo Foods' third-quarter net profit increased by 115.59% year-on-year The demand for global salmon market recovered strongly

On the evening of October 27, Joyvo Foods (300268) released the third quarter report of 2021, and the company achieved operating income of 3.377 billion yuan in the first three quarters, an increase of 1.39% year-on-year; the net profit attributable to the mother was a loss of 106 million yuan, a year-on-year decrease of 76.70%. Among them, the company achieved a net profit attributable to the mother of 30.4199 million yuan in the third quarter, an increase of 115.59% year-on-year.

Joyvo Foods said that with the fading of the impact of the epidemic, the global salmon market demand has recovered strongly, the price of salmon products has remained high, the company's operating conditions have continued to improve, and the salmon business has achieved a significant increase compared with the same period last year. From the perspective of subsidiaries, the net profit of the core subsidiary Australis Seafoods in the first three quarters achieved a turnaround, of which the net profit in the third quarter reached 87.6985 million yuan. Against the backdrop of a recovery in global market demand, the profitability of subsidiaries has rebounded sharply, with gross margins rising from -8.3% in the first quarter to 21.9% in the third quarter.

Public reports show that since June 2021, salmon market prices have been fluctuating at a high level, according to DataSalmon statistics, after June, the average weekly average price of whole fish sold from Chile to Brazil is significantly higher than in previous years, and the sales price per kilogram of salmon has reached more than $7. In addition, the average weekly average price of chilled salmon fillets sold to the United States from Chile fluctuated around $6 per pound, higher than the same period last year.

Kepler Cheuvreux, an analyst at the International Investment Bank, said that the subsidence of the epidemic has gradually returned salmon consumption to normal, and it is expected that from 2022, the demand for salmon market will achieve double-digit growth. Kepler Cheuvreux expects demand growth to reach a 25% level in the first quarter of 2022. In addition, Kontali, a well-known Norwegian seafood analysis agency, believes that by the end of May 2021, the salmon industry has changed from a global net surplus of 50,000 tons to a deficit of 90,000 tons, and the trend of tightening supply and high prices is becoming more and more obvious.

At the same time, Joyvo Foods is also actively promoting brand building, relying on upstream high-quality resources, increasing the research and development of 3R products and the expansion of Chinese market channels. During the reporting period, the company launched a high-nutrition children's food brand for maternal and infant customers, "Hungry Bear Classmate", and new products such as "Salmon Fresh Pine", "Atlantic Real Cod", "Arctic Sweet Shrimp" and "Salmon Crispy Chips" have been sold on e-commerce platforms such as Tmall and JD.com, and have been widely recognized by the market.

In terms of channel construction, the company signed sales agreements with large supermarkets, chain restaurants, processors, etc., and cooperated with mainstream e-commerce platforms and new retail platforms such as Tmall, Jingdong Mall, Daily Excellent Fresh, Dingdong Shopping And Hema Fresh.

It is worth mentioning that at the secondary market level, Joyvo Foods has recently been favored by the capital market, and the company's stock price rose sharply by 11.43% on October 27, and the company's stock price rose by more than 60% in the past two months.