Yangtze River Business Daily news ● Yangtze River Business Daily reporter Cai Jia
The A-share consumer industry has set off a "tide of price increases".
Following Haitian Flavor Industry and Qiaqia Food, the "first share of quick-frozen food" Anjing Food (603345.sh) announced a price increase, and the company reduced the promotional policy of some quick-frozen surimi products, quick-frozen dishes and quick-frozen rice noodle products or increased the distribution price, with a price adjustment range of 3%-10%, and the new price will be implemented according to the price adjustment notice of each product from November 1, 2021.
The reason for this price adjustment is the rise in cost. In the first three quarters of this year, Anjing Food achieved operating income of 6.096 billion yuan, an increase of 36.92% year-on-year, and net profit of 494 million yuan, an increase of 30.25% year-on-year. Among them, the net profit of Yasui Foods after deducting non-recurring gains and losses (excluding non-net profit, the same below) in the second quarter and the third quarter for two consecutive quarters fell by 3.99% and 28.36%.
In addition to rising cost prices, Yasui Foods is also facing the problem of digesting large-scale inventory. As of the end of September this year, Yasui food inventory increased by 517 million yuan to 2.3 billion yuan from the end of the previous quarter, an increase of 29%, an increase of 36% from the end of the previous year, more than double the growth rate of total assets.
On the other hand, after the listing of Yasui Foods, it has continuously expanded its production capacity through the raising of funds, and the recent increase of 5.74 billion yuan has been held. While the profit side is compressed, whether The rapidly expanding production capacity of Yasui Food can be smoothly digested, and whether the price increase of products can achieve a common increase in quantity and profit, Yasui Food will still face no small challenge.
The upward cost deduction fell for two consecutive quarters
In response to rising cost pressure, a number of A-share food and beverage industry companies recently announced product price increases.
After the market on November 1, Anjing Food issued a part of the product price adjustment announcement, in view of the continuous rise in the cost of raw materials, labor, transportation, energy, etc., in order to better provide dealers, consumers with quality products and services, promote the sustainable development of the market and the industry, after the company's research and decision, the promotion policy of some quick-frozen surimi products, quick-frozen dishes and quick-frozen rice noodle products was reduced or the distribution price was raised, and the price adjustment range was 3%-10%. The new price will be implemented from November 1, 2021 in accordance with the notice of price adjustment of each product.
The reporter of Changjiang Business Daily noted that before this, Haitian Flavor Industry and Qiaqia Food have successively announced price increases. Among them, Haitian Flavor Industry adjusts the ex-factory price of some products such as soy sauce, oyster sauce and sauce by 3%-7%. Qiaqia Food raised the ex-factory price of sunflower seed products and pumpkin seeds and small and fragrant watermelon seed products by 8% to 18%, which was higher than three years ago.
In the non-food and beverage sector, Dongpeng Holdings and Diou Home have also recently raised the prices of major tile products to cope with rising raw material and energy prices.
As the "first share of quick-frozen food", Yasui Food is currently mainly engaged in the research and development, production and sales of quick-frozen hot pot material products (mainly frozen surimi products and quick-frozen meat products) and quick-frozen noodle rice products and quick-frozen dish products, and is one of the enterprises with rich product lines in the industry.
The reporter of Changjiang Business Daily noted that before the price increase, Anjing Food had already experienced a phenomenon of performance growth under pressure. In the first three quarters of this year, Anjing Food achieved operating income of 6.096 billion yuan, an increase of 35.92% year-on-year; net profit of 494 million yuan, an increase of 30.25% year-on-year.
From the perspective of single-quarter performance, in the first three quarters of this year, Anjing Food achieved operating income of 1.884 billion yuan, 2.01 billion yuan and 2.203 billion yuan respectively, an increase of 47.35%, 27.68% and 34.92% year-on-year; net profit of 174 million yuan, 174 million yuan and 146 million yuan, an increase of 97.83%, 1.19% and 22.44% year-on-year; net profit after deduction of non-profit of 156 million yuan, 148 million yuan and 7747.76 million yuan, an increase of 101.29% year-on-year. , -3.99%, -28.36%, two consecutive quarters of decline.
According to flush data, in the first three quarters of this year, the gross profit margin and net profit margin of Anjing Food sales were 21.98% and 8.14% respectively, down 5.78 and 0.31 percentage points year-on-year. Among them, in the third quarter, the company's sales gross profit margin and sales net profit margin were 18.32% and 8.14%, down 8.14 and 0.31 percentage points year-on-year.
Inventory increased by 29% in three months and continues to raise funds to expand production
For the price increase of Yasui Food, the market seems to have expected it earlier. In addition to the high performance base affected by the epidemic last year, upstream power rationing and production limitation, and rising raw material prices are the main reasons for the short-term pressure on the profitability of Yasui Food.
Pacific Securities analysis, Anjing food in the third quarter of the gross profit margin declined, mainly due to the rise in raw material costs, of which the largest increase in oil and fat, soybean protein continued to grow, surimi and meat slightly increased, in the context of this year's pork price downturn, cost pressure transmitted to the price increase Action has a lag.
The above-mentioned brokerage pointed out that Yasui Foods carried out an indirect price increase to reduce promotional fees for a wide range of products in September to cover some of the cost pressures, and the fourth quarter will be more complete.
Guosheng Securities believes that in the short term, the company is facing many difficulties, under the premise of last year's high base, the fourth quarter peak season suffered from power curtailment and production, while the upstream supply chain was also disturbed, and the cost of raw materials and packaging materials rose. In addition, in the context of the decline in pork prices, the demand for the meat products business has also been affected.
The reporter of Changjiang Business Daily further combed and found that in response to the rise in costs with price increases, Anjing Food is also facing the problem of digestion of large-scale inventory.
As of the end of September this year, the total assets of Anjing Food were 8.257 billion yuan, an increase of 16.35% over the end of the previous year, and the current assets were 4.129 billion yuan, of which the inventory was 2.3 billion yuan, an increase of 609 million yuan over the end of the previous year, an increase of 36%, the growth rate of total assets was twice, and the increase was 517 million yuan from the end of the previous quarter, an increase of nearly 29%. The sharp increase in the inventory scale in the third quarter may aggravate the inventory digestion pressure of Yasui Foods at the end of the year.
On the other hand, since its initial listing in 2017, Yasui Foods has been raising funds on a large scale to expand its production capacity. In February 2017, Anjing Foods raised 601 million yuan in the IPO, and in 2018 and July 2020, the company issued 500 million yuan and 900 million yuan of convertible bonds, both for capacity expansion. According to rough statistics, the above-mentioned investment projects will expand a total of 650,000 tons of production capacity after completion.
In the middle of last month, an anjing food launched a scale of 5.74 billion yuan fixed increase plan approved by the CSRC, and the funds raised will continue to be used for capacity expansion.
However, from the implementation of the completed fundraising projects, as of the end of June this year, the two major projects in Sichuan and Wuxi in the Anjing Food Convertible Bond Fundraising Project have been put into production, and the benefits achieved in this period are 30.2315 million yuan and 15.0195 million yuan, which has not reached the expected benefits. Projects in Liaoning, Henan and other places are still under construction.
With the gradual release of production capacity and the lagging effect of price increases, can Yasui Foods achieve a win-win situation in scale and profit in the future?
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Editor-in-charge: zb
This article originated from the Yangtze River Business Daily