Source: Consumer Review Network (ID: XFPL1894)
Compilation: Cat Nine
As the first brand in the domestic light bottle wine market, Niulan Mountain not only "flew into the homes of ordinary people", becoming a product with a high frequency of self-drinking on the table of ordinary people, but also boosted the performance of Shunxin Agriculture to achieve rapid growth.
On August 25, Shunxin Agriculture, the parent company of Niulan Mountain, released its 2021 semi-annual report. According to the data, in the first half of the year, the company achieved revenue of 9.191 billion yuan, down 3.46% year-on-year; net profit attributable to shareholders of the parent company was 476 million yuan, down 13.27% year-on-year; basic earnings per share were 0.64 yuan.
According to the announcement data, Shunxin Agriculture has now formed two major industries based on liquor and pork, the company's liquor industry has two major brands of "Niulan Mountain" and "Ningcheng", "Niulan Mountain" currently has "classic two pot head", "traditional two pot head", "century-old cow pen mountain", "treasure cow pen mountain" and "aged cow lan mountain" five series of products; "Ningcheng" the main product is the fragrant Ningcheng old cellar liquor.
As the company's largest business segment, the liquor industry achieved operating income of 6.536 billion yuan during the reporting period, accounting for 71.11% of the total revenue, an increase of 1.09% over last year.
According to the report, the output of Shunxin agricultural liquor in the first half of the year was 416,100 kiloliters, of which Niulanshan Distillery contributed 415,100 kiloliters of production capacity, and the total sales volume was 430,100 kiloliters, an increase of 1.60% year-on-year.
In the first half of 2021, under the background of macroeconomic recovery and effective prevention and control of the epidemic in stages, the liquor industry as a whole has developed towards a trend of continuous improvement in industrial concentration, continuous optimization of product structure layout, and more prominent brand effects.
Overall, the overall development of the industry is stable and showing a structural prosperity trend. As the largest business segment of Shunxin Agriculture, the liquor industry achieved operating income of 6.536 billion yuan during the reporting period, an increase of 1.09% over last year, and its performance was relatively stable.
In recent years, the high-end of the liquor industry has become an inevitable trend in the development of the industry, and many liquor companies have laid out high-end markets to improve the level of gross profit margin and thus improve corporate profitability.
For Niulan Mountain, perhaps the high-end martyrdom has become a hard wound that is difficult for enterprises to heal. Therefore, NiulanShan began to lay out the high-end market to improve performance.
At the end of the supermarket, the high-end products of Niulan Mountain classic two-pot head and century-old Niulan Mountain have been sold, but the sales volume is inferior to that of low-end products Niulan Mountain Aging. Another high-end product, Kuisheng, is sold through online channels. In recent years, Red Star Erguotou has also frequently exerted its high-end market, which has launched Red Star Gaozhao Grandmaster 1949 products by creating a differentiated concept.
"At the high-end level, the differentiated products of Red Star Erguotou are slightly better than Niulan Mountain in terms of market feedback. This is undoubtedly a fatal blow for Niulanshan, which intends to improve gross profit margin through high-end products. In this regard, industry insiders pointed out that not only the high-end level, in the 15-50 yuan price band, NiulanShan in the face of the old village chief, Red Star Erguotou, Jiang Xiaobai and other wine companies challenges, but also to face such as Shanxi Fenjiu, Langjiu and Luzhou Laojiao in the field of light bottle wine segmentation deep ploughing.
The poor performance of the end market is further reflected in the performance data.
From the annual report of the first half of this year, the grade of Niulan Mountain products, the sales volume of Shunxin Agricultural Middle and High-end Products is not impressive, and there have been different degrees of decline. Low-grade wine has become the pillar of performance, generating about 5 billion yuan for the company.
In the first half of this year, the revenue of high-grade wine, mid-range wine and low-grade wine in Shunxin Agricultural Liquor Business was 796 million yuan, 765 million yuan and 4.976 billion yuan respectively, a change of -1.96%, -17.42% and 5.24% respectively over the same period of the previous year.
According to the financial report, Shunxin Agriculture divides liquor products into three grades of high, medium and low, of which high-grade wine is ≥50 yuan / 500ml, representing the classic two-pot head and the century-old Niulan Mountain; the price range of mid-range wine is ≥10<50 yuan / 500ml, and its products include treasures; low-grade wine is a price of less than 10 yuan, such as aging and traditional two-pot head.
High-end liquor revenue was 796 million yuan, down 1.96% year-on-year, with a gross profit margin of 70.98%, an increase of 0.17 percentage points year-on-year; mid-range liquor revenue was 765 million yuan, down 17.42% year-on-year, and the gross profit margin was 42.35%, an increase of 2.42 percentage points; low-grade liquor achieved revenue of 4.976 billion yuan, an increase of 5.24% year-on-year; gross profit margin was 28.93%, an increase of 0.01 percentage points.
On the one hand, the "people's liquor" has always been close to the people, on the other hand, the liquor industry is becoming more and more obvious liquor high-end trend, how to establish the positioning of Niulan Mountain in the minds of consumers can also be high-end is still a gradual promotion, a long way to go, after all, it is not easy to change the inherent cognition.
Drinkers, have you ever drunk Niulan Mountain Baijiu? What do you think of the high-end market entering the Bullpen Hill? Welcome to leave a message below to share
The above content is a summary of the relevant data collected by the network, and is only for discussion among drinkers.
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