Another beverage giant announced a price increase!

　　Li Zhi

　　On the evening of June 1, Liziyuan announced that it will adjust the ex-factory prices of some sweet milk milk beverages and flavored milk beverage series, and the price increase ranges from 6% to 9%. The new prices will start from July 1, 2022. implement.

Plum Garden announces price adjustment

The price of some products will be increased by 6%-9%

　　On the evening of June 1, Li Ziyuan issued an announcement stating that due to the continuous increase in the cost of main raw materials, packaging materials, transportation, and energy, in order to better provide high-quality products and services to dealers and consumers, and promote the sustainable development of the market, After the company's research and decision, the ex-factory prices of some sweet milk milk beverages and flavored milk beverage series in Liziyuan will be adjusted, and the price increase ranges from 6% to 9%. The new prices will be implemented from July 1, 2022.

　　The price adjustment of some products may affect the market share of the company's products. Therefore, this product price adjustment may not necessarily increase the company's revenue and profits. The impact of the price adjustment on the company's future performance is uncertain. Investors are advised to pay attention to investment risks .

　　In fact, in a road show on March 20, Li Ziyuan once revealed that the price of raw materials for large bags of powder has increased significantly in recent months, and the current situation is not clear.

In the second half of last year, the company made reserves of raw materials, especially large-package powder, which can meet this year's production consumption and has basically locked in this year's cost.

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.

　　In order to ensure product quality and taste, the company basically uses imported milk powder.

Fresh milk can be used as an alternative raw material, and there are also domestic brands of large-package powder, which can be used, but the price of domestic large-package powder is also rising.

Netizen: I will see the performance tomorrow

　　In response to the above situation, some people said: "Is a new round of price hikes for consumer goods coming?"

Shareholders have a lot of background behind

　　As of the end of the first quarter of this year, Moutai Jianxin (Guizhou) Investment Fund Management Co., Ltd. was the company's fifth largest shareholder, with a shareholding ratio of 3.93%.

　　It is understood that Moutai Jianxin Investment is an investment company under Moutai, and Kweichow Moutai holds 51% of the shares.

　　Li Ziyuan explained that on October 10, 2018, the company's general meeting of shareholders passed a resolution agreeing to increase the company's share capital by 6.5892 million shares. After the capital increase, the company's total shares increased to 116.1 million shares. .

At present, the company has no product cooperation with Moutai.

Liziyuan's first-quarter net profit fell due to rising raw material and energy prices

　　According to the official website, Zhejiang Liziyuan Food Co., Ltd. was established in 1994 and is headquartered in Jinhua City, Zhejiang Province.

The company's products include six series of milk beverages, dairy products, vegetable protein beverages, compound protein beverages, fruit juice beverages, and cereal beverages. Among them, the Liziyuan sweet milk milk beverage series is unique among similar products in the market.

And it will be listed on February 8, 2021.

　　In terms of stock price performance, from January to April this year, Li Ziyuan's stock price has been falling and falling, and then rebounded.

So far, the stock has fallen 28% this year.

The current total market value is 7.576 billion yuan, and the stock price is reported at 24.97 yuan.

　　In terms of performance, in the first quarter report, the company achieved operating income of 342 million yuan, a year-on-year increase of 3.28%; net profit attributable to shareholders of the listed company was 40.8339 million yuan, a year-on-year decrease of 23.59%.

　　Regarding the decline in net profit, Li Ziyuan said that it was mainly due to the increase in the prices of raw materials and energy during the reporting period; while the shrinking profit of the main business was mainly due to the increase in the prices of raw materials and energy during the reporting period and the receipt of non-profitable income. Government subsidies for recurring gains and losses increased over the same period of last year.

　　Haitong Securities said that the current increase in bulk costs has caused pressure on the gross profit margin in 22Q1.

At the same time, the increase in sales activities accompanied by the national expansion after the listing also led to an increase in sales expenses.

In the short term, the company's profitability is under pressure, and it still maintains a double-digit net profit margin attributable to the parent. It is believed that with the scale benefits brought by the subsequent increase in revenue scale, the price of raw materials will decline, and the company's profitability is expected to be restored.

The nationwide production capacity layout supports future sales volume.

In 2021, the company will promote the construction of production bases in an orderly manner, and the company's own production capacity will increase year by year.

The company's capacity expansion reflects the strong demand on the product side and the company's confidence in future development.

The active expansion of production capacity is expected to enable the company to seize future market opportunities and support heavy sales.

　　Guoyuan Securities believes that short-term profits are under pressure due to the increase in the prices of raw materials and the combined publicity expenses.

In addition to the pressure on the revenue side, the company's costs have also risen significantly.

Although the impact of the new crown epidemic is still ongoing, the company's national expansion strategy has not been shaken, and the company's channel construction is steadily advancing.

As of Q1 2022, the company has 2,666 dealers, a net increase of 16 from the end of 2021.

In terms of production capacity, the company's current five major production bases have a planned production capacity of about 350,000 tons. Combined with the current projects under construction, the long-term production capacity is expected to exceed 600,000 tons.

It can be seen that the foundation of the company's national expansion is still being consolidated. As the impact of the epidemic gradually subsides, the expansion effect is worth looking forward to.

　　Source: China Fund News