● Our reporter Duan Fangyuan, Yang Ziyan
Recently, three squirrels, Jinzai Food, Yanjin Shops and other leisure snack listed companies have successively disclosed their 2023 annual report and 2024 quarterly report, and the overall performance of leisure snack enterprises is remarkable. The scale effect has brought benefit enhancement, while the cost of the whole industry chain has been compressed, and the leisure snack industry has accelerated. In an interview with China Securities News, executives of several listed leisure snacks companies said that the overall downward movement of product prices will form a new balance between supply and demand. Facing 2024, it will become the focus of leisure snack industry development to develop omni channels.
Good results are reported frequently
The performance of listed snack food companies is good.
The first quarter report of three squirrels in 2024 shows that the company's total operating income in the current quarter was 3.646 billion yuan, up 91.83% year on year; The net profit attributable to shareholders of the listed company was 308 million yuan, up 60.80% year on year; Non net profit deducted was 263 million yuan, up 92.84% year on year.
In 2023, Jinzai Food will achieve a revenue of 2.065 billion yuan, a year-on-year increase of 41.26%; The net profit attributable to the parent company was 210 million yuan, up 68.17% year on year. The company expects that the net profit in the first quarter of 2024 will increase by 80% to 100% year on year.
In 2023, Yanjin stores will achieve a revenue of 4.115 billion yuan, with a year-on-year increase of 42.22%; The net profit attributable to the parent company was 506 million yuan, up 67.76% year on year. In the past six years, the compound annual growth rate of operating income and net profit attributable to the parent company of Yanjin stores exceeded 30%. The company expects to make profits of 150 million to 170 million yuan in the first quarter of 2024, with a year-on-year growth of 34.48% to 52.41%.
In addition, the performance forecast for the first quarter of 2024 of Wanchen Group, the parent company of Haoxianglai, a mass vendor snack bar, shows that it is expected to achieve a revenue of 4.7 billion yuan to 5.1 billion yuan in the reporting period, with a year-on-year growth of 516.9% to 569.4%; It is estimated that the net profit will be 65 million yuan to 75 million yuan, with a year-on-year increase of 41.5% to 63.1%.
How can leisure snacks run faster? Dong Mifeng Wenji of Jinzai Food said in an interview with the China Securities Journal that the scale effect has brought about increased benefits, reduced superimposed costs and promoted the overall performance growth of the leisure snack sector.
"The leisure snack sector is a trillion market, but there are not many industry leaders, and there are few ten billion enterprises. The market capacity is large enough to support the overall growth of the industry." Feng Wenji said that with the expansion of leisure snack enterprises, they will increase investment in technological transformation and automation upgrading, improve production efficiency and yield, and promote profit growth. In addition, the price of raw materials, packaging and freight have decreased, which has enlarged the profit elasticity.
"Quality price ratio" becomes a keyword
Relevant enterprises have implemented the "quality price ratio" strategy, and leisure snacks are sold more cheaply. The so-called "quality price ratio" is to reduce the terminal price on the basis of ensuring quality. Around the "quality price ratio" route, various leisure snack enterprises have given their own play.
According to the disclosure of three squirrels, the price of the snack products produced by the company will decrease by about 30% in 2023 compared with 2022. The monthly sales of this product on the dither platform exceeded 10 million yuan.
At the end of last year, the high-end snack shop announced that it would implement a large-scale price reduction. The price reduction products were mainly concentrated on 300 snacks with a high repurchase rate, with a maximum decrease of 45% and an average decrease of 22%.
Zhang Xuewu, chairman of Yanjin shop, introduced to the reporter of China Securities News that the scale effect of the company will gradually appear from 2022, and the products will gradually upgrade from "high quality+high cost performance" to "high quality+high cost performance".
Three squirrels put forward the strategy of "high-end cost performance". Zhang Liaoyuan, the founder and CEO of the three squirrels, told China Securities News that the nut category was more expensive in consumer cognition, and the supply and demand had been unbalanced for some time. The three squirrels lowered the product price through the "high-end cost performance" strategy, and the demand was gradually released.
Zhang Liaoyuan said that in the past, the whole process from raw material processing to sales to reaching the terminal was very cumbersome, with more profits distributed in all links, leading to higher product prices. "In 2023, the three squirrels have optimized the main links of the whole link. For example, through the sales of dithering e-commerce, products are delivered directly from the factory to consumers, saving storage costs and eliminating many intermediate links." Zhang Liaoyuan said that in 2024, the three squirrels will conduct more large-scale and large-scale centralized procurement at the raw material end to further reduce costs.
Yang Yinfen, chairman and general manager of Liangpin Store, said: "We will work with our supply chain partners to improve efficiency, reduce costs and finally achieve price friendliness through technological innovation and digital tools."
Competition is getting fiercer
Three squirrels proposed to strive to reach a revenue of 20 billion yuan in the next 2-3 years; At the recent general meeting of shareholders, Jinzai Food proposed to create a new "Jinzai" in the next three years. At the same time of accelerating, the competition of leisure snack track becomes more and more fierce.
The most intuitive competition is reflected in the price. In Zhang Liaoyuan's view, under the condition of generally achieving profit growth, snack enterprises gain market share by reducing prices. In the long run, if the whole industry does a good job of "quality price ratio", the overall downward movement of prices will form a new supply and demand balance. In this process, it is particularly important to master the omni channel.
In 2024, it may become the focus of leisure snack industry to develop omni channel.
"On the basis of maintaining the advantages of the original KA and AB supermarkets, the company will focus on the development of e-commerce, snack stores, campus stores and other formats." Zhang Xuewu said.
"The mass selling snack channel has grown rapidly in recent years, which is also one of our fast growing channels. Omni channel development is the only way for large single product companies." Feng Wenji said.
Three squirrels proposed the distribution target of "one million terminals" in 2024, which will go deep into the terminal "capillaries". Zhang Liaoyuan said that the strategy of "high-end cost performance" should be deepened. On the one hand, the price should be lowered, on the other hand, the distribution network should be optimized, middlemen should be reduced, and the organization should be rebuilt.
All channels strive for precise delivery, which puts forward new requirements for the industrial chain layout and organizational capacity of leisure food enterprises.
Taking three squirrels as an example, Zhang Liaoyuan introduced that consumers from all channels have different demands on the price and flavor of products. The three squirrels promote the strategy of "one product, one chain", make full use of large-scale platforms such as dithering to locate user needs, thus positioning product quality, and predict the affordability of the supply chain.
