Xiangpiaopiao, which ranked first in the market share of cup brewed milk tea for 9 consecutive years, recently released this year's third quarter report. In the context of the rise of new tea drinks and the trend of cup milk tea, Xiangpiaopiao cannot rely on a cup of milk tea to "circle the earth several times". Since 2017, Xiangpiaopiao has shifted to the dual drive of "brewing + ready-to-drink", and the latest third-quarter report presents the cooling and warm performance of two types of core products: the first three quarters of Xiangpiaopiao's brewing revenue was 1.412 billion yuan, an increase of 9.05% year-on-year; the ready-to-drink revenue was 531 million yuan, down 7.56% year-on-year. At present, "health" has become the new label of Xiangpiaopiao: Xiangpiaopiao recently announced that it will jointly invest in the establishment of two joint venture companies with Jindawei and Ningbo Xuanying Yunhao to test the waters of the health nutritional supplements and functional food and beverage market.
Revenue was $1,974 million
On the evening of October 29, Xiangpiaopiao released a third-quarter report card with profits and losses.
In the first three quarters of this year, Xiangpiaopiao's operating income was 1.974 billion yuan, an increase of 4.29% year-on-year, and the net profit was 39.3955 million yuan, down 11.45% year-on-year, and the net profit loss after deducting non-profit was 22.6441 million yuan.
Among them, in the third quarter, Xiangpiaopiao's operating income fell by 1.76% year-on-year to 886 million yuan, net profit fell by 6.2% year-on-year to 102 million yuan, and net profit after deducting non-profit was 75.7295 million yuan. However, on a sequential basis, revenue and net profit in the third quarter increased both, of which revenue increased by 123% sequentially.
From the above data, it can be seen that compared with the first half of the year, Xiangpiaopiao's net profit after deducting non-deductions in the third quarter of 2021 showed a significant improvement. According to the semi-annual report released earlier, Xiangpiaopiao's net profit loss in the first half of the year was 63 million yuan, and the net profit loss after deducting non-profit was 98 million yuan.
Specifically, the optimization of the channel system has achieved initial results. In the first three quarters, Xiangpiaopiao's dealer channel achieved revenue of 1.766 billion yuan, an increase of 2.57% year-on-year; the revenue of the key sales market in East China reached 771 million yuan, an increase of 7.56% year-on-year. The revenue of e-commerce channels was 160 million yuan, an increase of 31.54% year-on-year.
"Consumption Of Titanium" noted that the number of Xiangpiaopiao dealers at the end of the reporting period was 1232, an increase of 120 during the period, a decrease of 211. For the reduction of the number of dealers, Xiangpiaopiao responded in the performance report: "Mainly due to the promotion of the company's dealer management system, further optimization of the dealer and terminal service provider system, and the optimization of some smaller dealers into distributors or terminal service providers under the dealers, resulting in a decline in the number of dealers, but the channel is basically stable." ”
According to relevant media statistics, Xiangpiaopiao has a total of 3 new top ten circulating shareholders in this period, Hong Kong Securities Clearing Co., Ltd. holds 2,063,590 shares, accounting for 0.51% of the outstanding shares, Qiu Xiaohua holds 762,500 shares, accounting for 0.19% of the outstanding shares, and Huang Jianwu holds 1,818,900 shares, accounting for 0.45% of the outstanding shares. A total of 1 shareholder increased his shareholding, and Hu Min increased his holding by 16,000 shares, and the shareholder's shareholding accounted for 0.29% of the outstanding shares.
"Brew + Ready to Drink" dual drive
The weather is getting cooler, and the fourth quarter has always been the peak season for brewing drinks. Xiangpiaopiao revealed the strategy at the end of the season: it will continue the strategy of "saving the amount, digging the increment, and focusing on home consumption", and focus on increasing the intensity of "high-potential store construction" and "strong attack on the sinking market"... Boost peak season sales and boost full-year results.
Although the brewing category is still the basic plate of operation, Xiangpiaopiao is no longer the company that relies on a cup of brewed milk tea to circle the earth several times.
Public reports show that cup milk tea-based products have always been the main source of Xiangpiaopiao's operating income, from 2014 to 2016, Xiangpiaopiao's main business income was 2.065 billion yuan, 1.926 billion yuan and 2.364 billion yuan, accounting for more than 98% of the operating income. During this period, the market share of Xiangpiaopiao cup milk tea increased year by year, reaching 57%, 56.40% and 59.50% respectively, showing the strong competitiveness of the brand. However, the single product structure and the seasonal influence of brewed milk tea have always been the potential risk points of Xiangpiaopiao.
From the perspective of the macro market, cup milk tea has been continuously eroded by latecomers such as new tea drinks for several years. Public data show that from 2015 to 2019, the growth rate of the domestic cup milk tea market slowed down, from 16.35% in 2015 to 4.71% in 2019. According to the data of China Chain Store & Franchise Association, from 2005 to 2010, 2010 to 2015, and 2015 to 2020, the average annual compound growth rate of domestic instant and brewed tea drinks was 17%, 10% and 2%, respectively.
It is in the context of the "general trend has gone" of cup milk tea that Xiangpiaopiao began "Plan B" in 2017. In that year, Xiangpiaopiao landed on the Shanghai Stock Exchange and became the "first stock of Milk Tea in China"; at the same time, in 2017, it established a "two-wheel drive" strategy, that is, to expand the liquid ready-to-drink milk tea market while steadily developing solid cup milk tea. On the basis of the original "Xiangpiaopiao" brand, two new brands of "MECO" and "Lanfangyuan" have been newly launched, positioning more high-end liquid milk tea products, which is undoubtedly a preemption for the summer beverage market.
The latest third quarter report presents the "cold and warm" performance of xiangpiaopiao's two core products: in the first three quarters, Xiangpiaopiao's brewing revenue was 1.412 billion yuan, an increase of 9.05% year-on-year; the revenue of drinks was 531 million yuan, down 7.56% year-on-year; and the sales revenue of other categories was blank.
New label for "Health"
In the cup brewed milk tea market, XiangPiao's brother has a solid position. From 2012 to 2020, Xiangpiaopiao ranked first in the market share of cup brewed milk tea for 9 consecutive years. In October last year, he was also awarded the title of Guinness World Record Holder of the "Instant Tea Sales Record".
However, in front of Xiangpiaopiao, it is still a long way forward such as multi-line layout and boosting performance. According to media reports, during the period from the semi-annual report of 2017 to the semi-annual report of 2021, Xiangpiaopiao's net profit attributable to the mother and the net profit of non-net profit were only positive in the semi-annual report of 2019, which was 23.5296 million yuan and 22,800 yuan respectively, and the semi-annual reports of other years were in a state of loss.
"Brand aging, product aging, scene aging, system aging, etc. are all problems faced by Xiangpiaopiao. Although some new products have been launched, they are not enough to support the future development of enterprises. From the overall point of view, the punching class still belongs to the 'big head' of Xiangpiaopiao, but the entire punching class has fallen into the ceiling effect and also fallen into the cycle of consumption fatigue. Under the impact of new tea drinks, Xiangpiaopiao needs to choose a new track according to its own situation on the basis of solving the aging problem. Zhu Danpeng, an analyst in the Chinese food industry, told Consumer Titanium.
"Consumption of Titanium" noted that after "brewing + ready to drink", "health" became the new label of Xiangpiaopiao. In September this year, Xiangpiaopiao's new products of zhen milk tea and milk tea were launched. The former is based on the selling point of "preferring imported milk powder and pure flavor condensed milk from natural farms", and the latter is called "to achieve real 0 vegetable fat powder and 0 trans fatty acids." ”
"The transition to a healthy direction such as nutritional supplements is indeed a trend of Xiangpiaopiao, which is more competitive in the market than the general direction." In the eyes of many young people, traditional brewed milk tea has become 'too much sugar, too many additives'. Healthier food has become the future pursuit of many consumers and businesses. Jiang Han, a senior researcher at Pangu Think Tank, said.
At the level of corporate strategy, Xiangpiaopiao has also opened a test in the market of healthy nutritional supplements and functional foods and beverages. On the eve of the release of the latest third quarterly report, Xiangpiaopiao issued an announcement that it signed a cooperation agreement with Jindawei, a leading enterprise in the whole industry chain of domestic A-share nutrition and health, and Ningbo Xuanying Yunhao, to jointly invest in the establishment of two joint venture companies to carry out the research and development, production and sales of LEAN BODY products in the Chinese market, and jointly develop the Market for Health and Nutrition Supplements, Related Functional Foods and Functional Beverages in China.