The battle for the first share of A-share fast food has resurfaced. At the beginning of June, Baijia Akuan updated the prospectus, and increasing income without increasing profits became the focus of attention.
In response, Bai Jia Akuan responded that this is consistent with the overall development of the industry.This is due to the sharp rise in the prices of raw materials for bulk commodities and the return of end consumer demand to normal in 2021, resulting in increased investment by the company.
It is normal for Bai Jia Akuan, who started out in marketing, to increase the investment of all parties.However, Akuan’s large online investment has caused complaints from offline dealers. Although offline dealers will increase in 2021, the reduction will be close to half of the total offline dealers, so we have to be vigilant.
In the eyes of industry insiders, Baijia Akuan has only been established for 5 years. It has achieved rapid growth through online marketing. It is a must to achieve listing before the online dividend disappears. The advantages of Master Kong, Unity, and Jinmailang compete.
Increase income but not profit, in line with the development trend of the industry
Baijia Akuan updated the prospectus, and the disclosed 2021 performance shows that Baijia Akuan's total revenue in 2021 is 1.214 billion yuan, a year-on-year increase of 9.4%, net profit is 55.8419 million yuan, a year-on-year decrease of 26.6%, and gross profit margin is about 27.27% , down about 2 percentage points from the same period last year.
In this regard, Baijia Akuan made an analysis from the industry level in response to the interview of the Blue Whale Finance reporter, "Overall, the company's revenue has continued to grow steadily, and the company's revenue during the reporting period has an average annual compound growth rate of 38.72%. %, and the gross profit margin level of the company's main business is relatively stable in the industry, with strong overall profitability. The company's net profit will decline to a certain extent in 2021, which is consistent with the overall industry development."
The prospectus shows that in the past three years, Baijia Akuan's income has maintained continuous growth.From 2019 to 2021, Baijia Akuan achieved operating income of 631 million yuan, 1.11 billion yuan and 1.214 billion yuan respectively, a year-on-year increase of 49.54%, 75.89%, and 9.4%; net profit was 23.6485 million yuan, 76.0783 million yuan, 5584.19 10,000 yuan, the growth rate was 288.65%, 221.70% and -26.60%.
The same is true for mainstream instant food brands in the industry.Master Kong's revenue from 2019 to 2021 was 61.978 billion yuan, 67.618 billion yuan and 74.082 billion yuan respectively, and the net profit also fell from 3.331 billion yuan and 4.062 billion yuan to 3.802 billion yuan.Uniform's net profit also fell from 1.626 billion yuan in 2020 to 1.501 billion yuan in 2021.
In addition to the development of the industry, Bai Jia Akuan believes that due to the continued impact of the epidemic, the prices of raw materials for bulk commodities have risen sharply. From the financial reports of listed food companies, it can be seen that all food companies are facing the pressure of rising costs.
The financial report shows that in 2021, the amount of Baijia Akuan's direct materials will increase by 56.4362 million yuan compared with 2020. The main reason is that Baijia Akuan's oil and fat raw materials are affected by factors such as the new crown epidemic abroad and extreme weather in the origin of raw materials. Lead to its purchase prices continue to rise, such as rapeseed oil, palm oil, soybean oil.
Taking palm oil as an example, China's palm oil import and export prices will rebound in 2021.The average import price of palm oil in 2021 is US$0.9/kg, an increase of 39.92% over 2020.In 2021, China's palm oil market prices also rose as a whole.In 2021, the market price of palm oil in China will be above 7,000 yuan/ton, and the average market price in November will even be as high as 10,386 yuan/ton.
Baijia Akuan was established in December 2016 and has successively acquired companies such as Chuanbai Foods, Beijing Yashi, Baijia Potato Industry, Yashi Import and Export.
At present, Baijia Akuan is mainly engaged in the research and development, production and sales of new convenience foods. The main product types include instant noodles, instant vermicelli, instant rice noodles, and self-heating food.Its founder, Chen Zhaohui, was originally an advertiser and has worked as a distributor of many well-known consumer brands, and has also won marketing awards for this.
Feng Huaqing, senior consultant of Reese's strategic positioning consulting, believes that Baijia Akuan has expanded from the fan category to create a new category of red oil noodles, which has become a super single product that contributes to Baijia's growth.Its success lies in the fact that there was no shortage of similar products on the market at that time, but Akuan gave it a new category definition instead of naming it as wide noodles or Liangpi.
Support is biased and heavy, and offline dealers change blood
Regarding the increase in revenue but not profit, Baijia Akuan also said that in 2021, terminal consumer demand will return to normal, and the company will increase support for customers in various channels in order to speed up market layout and channel construction.
The financial report data shows that in 2019 and 2020, Baijia Akuan's revenue and profit have achieved rapid growth, of which revenue growth has achieved high double-digit growth, and net profit growth has even exceeded triple-digit growth.In 2021, the growth rate of revenue will return to single digits, and the net profit will also decline, which has explained the problem.
During the epidemic prevention and control period, consumers in many places emptied the supermarket shelves of instant noodles. It is estimated that there are still many consumers who have not eaten their own instant noodles. This is also the main reason for the sharp decline in revenue growth and the decrease in net profit.
In order to maintain growth, Baijia Akuan has increased investment.The prospectus shows that in 2021, Baijia Akuan's sales expenses will be 164 million yuan.Year-on-year growth of about 14%.The percentage of revenue increased from 13.02% in 2020 to 13.52% in 2021.
However, Bai Jia Akuan put all the main expenses on the line.According to the prospectus, the promotion service fee of Baijia Akuan amounted to 96.8374 million yuan, of which the e-commerce channel service fee was 66.734 million yuan.This data accounts for 24.91% of the online self-operated income of 268 million yuan.
Offline investment is relatively small.The offline promotion fee, entry fee, pile display fee, and poster display fee totaled 29.6287 million yuan, accounting for only 8.1% of the domestic offline distribution revenue of 364 million yuan.
In this comparison, Baijia A's practice of favoring one over the other has led to the instability of offline dealers.
A distributor from Hebei told the Blue Whale Finance reporter that he had visited the factory of Baijia Akuan, and the founder was also a distributor, so he was very confident in Baijia Akuan.However, at the end of 2021, Bai Jia Akuan will no longer be represented."The price system is messed up, online prices are 30% cheaper than offline, and offline can't be done."
According to the prospectus, Baijia Akuan had 810 offline dealers at the beginning of 2021, a decrease of 362 at the end of the period, accounting for 44.7%.An increase of 458, bringing the total to 906.
In this regard, Baijia Akuan said that the number of dealers has been reduced by a relatively large number in each year, mainly due to the initiative to stop cooperation with some dealers that are smaller in scale or have not reached the performance terms stipulated in the contract; The dealers who cooperate with Baijia Akuan; due to the impact of the new crown epidemic, some smaller dealers have undergone business transformation or terminated cooperation.
Both sides disagree, but it's a fact that online products are cheaper.
The price of 270 grams of Baijia Akuan Chengdu Sweet Water Noodles in Yonghui Supermarket is 15.9 yuan, but the price of two boxes + a pack of hot and sour noodles in Tmall flagship store is only 22.9 yuan, or 18.9 yuan after discount.The offline price of 108 grams of hot and sour powder is 6.9 yuan, and the price of 4 bags of the same product in the online Akuan Tmall flagship store is only 15.8 yuan.
In fact, many brands have hurt their dealers because of online and offline price issues.In the early stage of launching offline channels, the three squirrels failed to differentiate products in time, which led to their online becoming the main competitor of their small stores.So far, Three Squirrels has closed 300 stores.The same is true for Vitasoy. In 2020, Vitasoy adjusted the operation team in the north, promoting low-price online, which lowered the brand value, and was eventually abandoned by the dealers.After the epidemic has stabilized, Vitasoy's performance is still difficult to recover in a short time.
"There are many products online that are homogenized with Baijia Akuan. The founder of Baijia Akuan is very powerful, but the company can rely on marketing at the beginning of its development. Short-term interests." The above-mentioned dealers told Blue Whale Finance reporters.
(Editor in charge: Guan Jing)
