Li Ziyuan, which is still 63 years away from a century-old enterprise, encountered difficulties in the year following its listing. How will Li Guoping lead Li Ziyuan out of the current predicament?
Childhood memories have gone up in price.
Not long ago, many people's childhood memories Zhejiang Liziyuan Food Co., Ltd. (hereinafter referred to as "Liziyuan") disclosed a price increase notice on Children's Day.
Li Ziyuan said that based on the continuous increase in the cost of main raw materials, packaging materials, transportation, energy, etc., it has decided to adjust the ex-factory prices of some sweet milk milk drinks and flavored milk drink series of Liziyuan, and said that the price increase range is 6%-9% not wait.
In fact, due to the continuous rise of raw materials and other costs, the performance of Liziyuan in the first quarter has been affected. Not only has the growth rate of operating income slowed down, but even the net profit has experienced negative growth, and even profitability indicators such as gross profit margin and net profit margin have also appeared. declined to varying degrees.
In this regard, the industry believes that the price increase of Liziyuan is precisely because of the deterioration of performance in the first quarter.
It's just that how many people can pay for Liziyuan, which has already entered the market with low price and low nutrition, after the price rises?
[The price increase of some products ranges from 6% to 9%]
Recently, Li Ziyuan disclosed an announcement on the price adjustment of some products. Businesses and consumers provide high-quality products and services to promote the sustainable development of the market. After research and decision by Liziyuan, the ex-factory prices of some sweet milk milk drinks and flavored milk drinks series of Liziyuan will be adjusted by 6%~9%. %, the new price will be implemented from July 1, 2022.
In addition, Li Ziyuan also said that it may affect the market share of the company's products. Therefore, this product price adjustment will not necessarily increase the company's revenue and profits. The impact of the price adjustment on the company's future performance is uncertain. Investors pay attention to investment risks.
In fact, the price increase of Liziyuan may already have clues. Recently, with the rising cost of raw materials, the growth of corporate performance has been weak. Many companies in the food and beverage sector have increased prices to cope with the increase in costs of raw materials. In March, Liziyuan When receiving institutional research, he said that the price of raw materials for large bags of powder has increased significantly in recent months, and the current situation is not very clear.
He also said that in the second half of last year, Liziyuan had stockpiled raw materials, especially large-sized powder, which could meet the production volume this year, and had basically locked in the cost of this year.If it remains high in the second half of this year, many companies, including companies, will not rule out price hikes to hedge against rising costs.
[Deterioration of performance in the first quarter]
From the perspective of the industry, the direct fuse that led to the accelerated progress of Liziyuan's price increase or the deterioration of its performance in the first quarter.
Data show that in the first quarter, Liziyuan achieved operating income of 341.5 million yuan, a year-on-year increase of 3.28%; net profit of 40.83 million yuan, a year-on-year decrease of 23.59%; non-returned net profit of 34.34 million yuan, a year-on-year decrease of 33.6%.
At that time, Li Ziyuan and major institutions all said that the main reason for the deterioration of performance in the first quarter was the impact of rising raw material and energy prices, resulting in a year-on-year decrease of 6.53 percentage points in its gross profit margin to 31.34%, while the decrease in gross profit rate greatly affected Lizi. The profit performance of the park also greatly reduced its profitability. In the first quarter, the net profit margin of Liziyuan was 11.96%, a year-on-year decrease of 4.2 percentage points.
Li Ziyuan said that although the price of milk powder has been locked in advance, the locked price has also increased year-on-year, as well as packaging and accessories; energy is mainly natural gas and electricity prices.
Liziyuan sweet milk is mainly divided into 225ml and 450ml bottles. In the Liziyuan Taobao flagship store, the price of 225ml*20 sweet milk coupons is 46.8 yuan, which is equivalent to 2.34 yuan per bottle, and the price after 450ml*10 sweet milk coupons 46.8 yuan, which is equivalent to 4.68 yuan per bottle. If the above price increase method is used, after the price increase, each 225ml bottle is 2.48 yuan to 2.55 yuan, and 450ml is 4.96 yuan to 5.10 yuan per bottle. The price increase ranges from 0.14 yuan to 0.42 yuan per bottle. .
In addition, taking coconut milk coffee flavored milk drink as an example, its 280ml*8 coupon is priced at 44.8 yuan, which is equivalent to 5.6 yuan per bottle. According to the above plan, after the price increase is 5.94 yuan to 6.1 yuan per bottle, the maximum increase will reach 0.5 Yuan.
Although only some products have raised prices, the prices of Liziyuan's own products are relatively low, and a slightly increased price can still hedge against the increase in costs. In the case of deteriorating performance, declining gross profit margins, and rising costs, it can still be reversed to a certain extent. Li Ziyuan's current situation.
At the same time, Haitong Securities also believes that, on the one hand, in the medium and long term, with the increase in the ex-factory prices of some of the company's products, it can effectively alleviate the current pressure on profitability.At the same time, if the total cost of the company falls in the future, the improvement of the company's profit margin will also be worth looking forward to.And said that on the other hand, in the short term, considering that the company's new price will be implemented from July 1, it will also effectively drive the increase in channel inventory.
It can be seen that there are many benefits of increasing the price of plum gardens.
[Price increase does not increase nutrition]
However, in the opinion of dairy expert Song Liang, “In the medium and long term, the overall macro consumption situation is not good. The prices are basically the same, and consumers may choose more dairy products from big brands, while Liziyuan has certain advantages in the third- and fourth-tier markets and rural markets, but the advantages have been eroded by Yili and Mengniu
. The Mengniu Tmall flagship store shows that 250ml*16 pure milk coupons are priced at 52.8 yuan, which is equivalent to 3.3 yuan per bottle, and if you buy two boxes of 250ml*16 specifications, each bottle will be as low as 2.97 yuan; Yili is no exception, Tmall The flagship store 250ml*16 pure milk coupon is priced at 51.2 yuan per bottle, which is equivalent to 3.2 yuan per bottle, and the two boxes per bottle are directly reduced to 2.4 yuan per bottle. Compared with the above-mentioned Liziyuan sweet milk after the price increase, Liziyuan has no greater advantage.
In addition, Liziyuan sweet milk is not as rich in nutrients as Mengniu, Yili and other pure milk.
Li Guoping, chairman of Li Ziyuan, once said, "Our school has a lot of channels. Every time we enter a new city, we start a school first, because young people prefer our products."
However, according to Hydrogen Finance, Liziyuan sweet milk is a milk-containing beverage, and according to my country's "GB/T21732-2008 Milk-containing beverages" regulations, the protein content of formulated milk-containing beverages and fermented milk-containing beverages shall not be less than 1 %, the protein content of lactic acid bacteria beverages shall not be less than 0.7%, and the protein content of pure milk shall not be less than 2.9%.
That is to say, the nutrition of Liziyuan sweet milk is far lower than that of pure milk at almost the same price, so the advantages of Liziyuan are even less obvious.
In addition, Wang Dingmian, a senior expert in the dairy industry, once suggested that the nutritional value of milk-containing beverages is only 1/3 of that of milk, and people should drink real dairy products, such as fresh milk and yogurt, to supplement nutrition.
Li Guoping once said that "listing is not the ultimate goal of enterprise development. 'Liziyuan' will take this as a starting point and opportunity to strengthen and expand the scale of the enterprise, and is determined to become the leader of the national dairy beverage industry, strive to create a century-old brand, and strive to be a century-old brand. Industry.”
Now, Li Ziyuan, which is still 63 years away from a century-old enterprise, encountered difficulties in the year following its listing. How will Li Guoping lead Li Ziyuan out of the current predicament?
