A dazzling array of condiments in the supermarket.

　　Guangjing Observation

　　Text/Zhao Fangyuan, All Media Reporter, Guangzhou Daily

　　Photo: Wang Weixuan, All Media Reporter, Guangzhou Daily

　　Under the dual pressure of rising raw material costs and declining performance, Fuling mustard mustard has recently issued a price adjustment announcement stating that the ex-factory prices of some products will be adjusted, with the maximum increase of 19% for each category, and the price implementation will be implemented at 17:00 on November 12, 2021. .

　　The recent increase in prices by food companies has aroused concern.

The reporter learned that the end products of the food industry will increase prices almost every year, but this round of price increases is more concentrated and the increase is relatively large.

The industry believes that the current price increase still has a certain impact on product sales, and it is estimated that there will be an adaptation period of 1-2 months.

It is predicted that the pressure on the cost side of the condiment industry will still be difficult to alleviate in the short term, and the performance release node may be postponed this time.

　　Net profit fell in the third quarter, Dafuling mustard tuber adjusted the highest price by 19%

　　According to the price adjustment announcement issued by Fuling mustard tuber, the company adjusted the ex-factory prices of some products based on the continuous increase in the cost of main raw materials, packaging materials, auxiliary materials, energy, etc., as well as the cost increase caused by the company's optimized and upgraded products, with an increase of 3 for each category. %-19% range, price execution will start at 17:00 on November 12, 2021.

　　The reporter noted that Fuling mustard tuber is still facing tremendous pressure from performance decline.

The 2021 third quarter report of Fuling mustard tuber shows that the first three quarters of this year achieved revenue of 1.956 billion yuan, an increase of 8.73% year-on-year; net profit attributable to the mother was 504 million yuan, a year-on-year decrease of 17.92%.

Among them, the third quarter achieved revenue of 609 million yuan, a slight increase of 1.3% year-on-year; net profit attributable to the parent company was 127 million yuan, a sharp drop of 39.07% year-on-year.

　　Fuling mustard tuber revealed at the performance briefing that the demand in the industry has not changed much recently, and the enterprises in the industry are currently in a state of stock competition.

This year, the company has increased its brand expense investment to seize the market of competitors, which has a greater impact on small and medium-sized enterprises in the industry.

　　As soon as the news of the price increase came out, it quickly triggered heated discussions.

Some netizens disagree, "This is nothing, a pack of mustard is so cheap."

Some netizens also said that the price of mustard has already risen and the quantity has decreased a lot, so they decided not to buy mustard in the future.

The share price of Fuling mustard tuber hit the daily limit on November 15. As of the close of the market on November 16, it fell 4.26% on that day to close at 33.93 yuan per share.

　　Concentrated price increases in the past month range from 3% to 20%

　　In fact, in order to cope with the pressure of rising costs, many food companies, including soy sauce, melon seeds, edible salt, vinegar, dried noodles, and quick-frozen products, have recently announced price adjustments that are closely related to mass consumption.

On October 12, soy sauce leader Haitian Flavour Industry took the lead in raising prices and announced that it would adjust the ex-factory prices of some products such as soy sauce, oyster sauce, and sauces. The price adjustment range of main products ranged from 3% to 7%. The new prices were implemented on October 25. day.

　　Immediately afterwards, Qiaqia Foods announced that it would adjust the factory prices of sunflower seeds, pumpkin seeds, and small and fragrant watermelon seeds on October 22. The price increase of each category was 8%-18%; on November 3, Xuetian Salt According to the investor interaction platform, the ex-factory price of Xuetian small packet salt has been gradually increased within 10% recently, and the price of industrial salt has increased by 30%-50%;

　　On November 9, Zuming announced that the ex-factory price of some plant protein drinks (mainly self-supporting soy milk) would be increased by 15%-20%. The new price will be implemented on November 15; The first share of the industry, Keming Food, issued an announcement stating that the prices of the company's various products will be raised, and the new price policy will be implemented on December 1. The specific increase has not been announced.

Arowana revealed in recent investor relations activities that if the market maintains high prices for a long time, it will also consider price adjustments.

　　The reporter noticed that this round of food companies’ price adjustments showed the following characteristics: leading companies took the lead, and small and medium-sized enterprises followed up; foreign official announcements were mostly concentrated from the end of October to November, with price increases ranging from 3% to 20%. The execution time is concentrated in mid-to-early November and so on.

Condiment companies such as Haitian Flavour Industry, Hengshun Vinegar Industry, and Lee Kum Kee have become the "pioneers" starting this round of price adjustments.

Guosheng Securities believes that the transmission of PPI to CPI has a time lag of about 6 months, and it is expected that the CPI will rise to create a price increase window.

Due to the high fitting effect between the CPI and CPI of the condiment, the price of the condiment may be increased in the industry.

　　With the sound of price increases one after another, many consumers have reported that it is not just this round of price adjustments. In the past two years, the actual price increase of many food companies' products has not been small, but few companies have officially announced it.

"In fact, terminal products will increase in price every year, but the companies and time periods that have increased prices this year are relatively concentrated, and the rate of increase is also greater than before. 2-3 months ago, supermarkets have already started to increase prices for products." A supermarket purchasing director told reporters , Different industries will adjust prices according to their own conditions. In previous years, the price adjustment range was generally low, not exceeding 10%, and the impact was relatively narrow.

　　"For listed companies, if possible changes in financial data caused by price increases exceed a certain standard, listed companies need to make public announcements; non-listed companies can choose to announce price increases voluntarily, or they can directly increase prices based on hot spots." Insiders told reporters.

　　In recent investor relations activities, Arowana also revealed that the retail end has adjusted the prices of different oil types at the end of 2020 and March-April 2021. Although the price adjustments are relatively cautious, the price increases of different oil types are different, but the overall The price increase has also reached about 10%-15%.

　　Increase in prices makes institutions favor product sales or affects

　　Large-scale price adjustments by food companies have also aroused frequent attention from institutions.

According to data from Eastern Fortune Choice, according to incomplete statistics, as of November 15, the food and beverage sector has been upgraded by 22 institutions in a month.

Among them, Zhongju High-tech, Qianhe Flavour Industry, and Haitian Flavour Industry in the condiment industry were raised 1, 2 and 3 times respectively.

　　How is the current market response to this round of product price increases?

A supermarket purchasing director told reporters: “Consumers are still relatively savvy. They are more sensitive to some products with large price increases. In the near future, many people will purchase products that are specially promoted. Product sales do have a certain impact, and the market is estimated to have an adaptation period of 1-2 months."

　　Institutional data shows that in the first three quarters of this year, the food processing sector revenue fell by 2.99% year-on-year, and net profit attributable to the parent fell 19.54% year-on-year; the third quarter revenue fell 11.44% year-on-year, and the growth rate fell from the second quarter; Net profit fell 52.92% year-on-year, and the growth rate expanded from the second quarter decline.

　　According to the analysis of the Zheshang Securities Research Institute, after the price increase, the cost-side pressure of each company will be effectively relieved and corporate profits will be increased in the future.

Guosheng Securities Research reported that after five years, the cost of the condiment industry has pushed a new price increase cycle.

It is predicted that the pressure on the cost side will be difficult to alleviate in the short term. The performance release node may be postponed, and it is expected that the profit release node may be released after the second quarter of 2022.

However, the timing of price increases will disrupt the pace of shipments, and the extent and scope of price increases will also affect sales.