The price of Qiaqia food has gone up again.

Recently, Qiaqia Foods announced an overall price increase of about 3.8% for its sunflower seed series products, which is less than a year since the last product price increase.

Product upgrades and rising raw material costs are the reasons for the price increase given by Qiaqia Foods.

However, in the eyes of industry insiders, in addition to easing cost pressures, Qiaqia Food's repeated price increases may be due to weak growth in its main business.

　　Judging from the financial report data, the growth rate of the sunflower seed business, which accounts for more than 60% of its revenue, is showing a slowing trend, which is not good for Qiaqia Foods, which has set a goal of "achieving a tax-included sales revenue of 10 billion yuan in 2023". According to the news, this is also considered by the industry to be another important reason for the successive price increases of Qiaqia Foods.

Twice a year price increases

　　A price increase announcement once again pushed Qiaqia Foods into the public eye.

　　On the evening of August 23, Qiaqia Foods announced that after research and decision, the ex-factory price of sunflower seed series products will be adjusted, and the overall price increase will be about 3.8%. The company has begun to implement the new price policy on August 21, 2022.

　　Regarding the reasons for the price increase and the criteria for the consideration of the price increase, the relevant person in charge of Qiaqia Foods said in an interview with a reporter from Beijing Business Daily, "Qiaqia Foods is based on the upgrade of the company's sunflower seed series products, which brings product strength improvement and the accompanying raw materials and packages. The cost of auxiliary materials, energy, etc. has risen, in order to better provide consumers with high-quality products and services, and promote the sustainable development of the market.”

　　This is not the first time that Qiaqia Foods has raised prices on its melon seeds products.

In October 2021, Qiaqia Food announced that it will adjust the ex-factory prices of the company's sunflower seed series products, pumpkin seeds, and small and fragrant watermelon seeds. The price increase of each category ranges from 8% to 18%. The price execution will be implemented on the same day. .

The reason for the price increase is also due to the increase in product strength brought about by the upgrade of the company's melon seed series products, and the increase in the cost of raw materials, packaging and auxiliary materials, and energy.

　　Shen Meng, chief strategist of Guangke Consulting, said, "For Qiaqia Foods, the cost increase is much larger than a single product price increase, so the price increase is not enough to completely pass on the pressure of cost changes. At the same time, the current market demand is shrinking. , price hikes could further hit corporate demand, impacting its revenue and profits.”

　　Regarding the price increase of the above-mentioned terminal products, a reporter from Beijing Business Daily learned from the customer service staff of the Tmall flagship store of Qiaqia Foods, "The sunflower seed products in the store account for the majority, about 70%, but they have not yet received a price increase notice. ".

This means that if the price increase is transmitted to the terminal, about 70% of the products in the store may increase in price.

　　According to the data, Qiaqia Foods is mainly engaged in the production and sales of nut roasted seeds and nuts, including sunflower seeds, watermelon seeds, beans, pumpkin seeds, peanuts and other traditional roasted seeds and nuts, as well as pistachios, walnuts, almonds, etc. Nut products.

Among them, the sunflower seed series products mentioned in the two price increases are the main force of Qiaqia Foods' revenue.

The data shows that from 2019 to 2021, the revenue of sunflower seed products accounted for 68.27%, 70.43%, and 65.89%, respectively.

Core product stall

　　As the mainstay of Qiaqia Foods, the slowdown in the performance of sunflower products may also be a "catalyst" for its price increase.

　　A reporter from Beijing Business Daily reviewed the performance of Qiaqia Foods in recent years and found that during the period from 2019 to 2021, Qiaqia Foods' sunflower seed revenue was 3.302 billion yuan, 3.725 billion yuan, and 3.943 billion yuan, respectively, and the revenue growth rate was 17.54%, 12.8% and 5.86%.

　　During the same period, the gross profit margin of sunflower seeds has also declined slightly. Although it has risen after the price increase in October last year, it has not recovered to the level of 2019.

The data shows that the gross profit margin of sunflower seeds from 2019 to 2021 is 35%, 33.35% and 34.13% respectively.

The latest semi-annual report shows that the gross profit margin of Qiaqia Foods sunflower seeds in the first half of 2022 was 31.56%, down 0.42% from the same period last year.

　　According to Jiang Han, a senior researcher at Pangu Think Tank, there are two reasons for the decline in the consumption of sunflower seeds. On the one hand, after the consumption upgrade of sunflower seeds over the years, consumers have more choices. Sunflower seeds are a single popular product, or traditional products. The attractiveness to consumers is declining. On the other hand, the demand for sunflower seed products itself is not strong, and bulk sunflower seeds occupy a large share of the melon seed market.

　　Public data shows that the overall demand for melon seeds in China has shown a downward trend, especially in 2015-2018. Although it has rebounded in 2019, the total annual demand has reached 12,779.8 tons, but it is still difficult to reach 13,183.7 tons in 2015. Level.

Although China's melon seeds industry chain is relatively mature, from the perspective of the entire market, the market share of packaged melon seeds is only about 10%, while the bulk melon seeds account for 90%, and the degree of product homogeneity is quite high.

　　The growth of core categories has slowed down, and the profitability of Qiaqia Foods is also facing new challenges.

The data shows that from 2018 to 2020, the year-on-year growth rate of Qiaqia Food's net profit was 35.58%, 39.44%, and 30.73%, respectively.

However, by 2021, the growth rate of Qiaqia Food's net profit will decline significantly.

According to the 2021 financial report of Qiaqia Foods, the company achieved revenue of 5.985 billion yuan, a year-on-year increase of 13.15%; net profit attributable to the parent was 929 million yuan, a year-on-year increase of 15.35%.

　　In order to seek the second curve of performance growth, Qiaqia Foods launched daily nuts around 2017.

However, from the perspective of revenue share, the breakthrough of the nut category is not obvious.

From 2019 to 2021 and the first half of 2022, Qiaqia nut category revenue accounted for 17.06%, 17.96%, 22.83% and 19.59%, respectively.

In the eyes of industry insiders, Qiaqia Foods started its nuts layout late. At that time, Wolong Daily Nuts had basically secured the top market share, and the layout of the three squirrels and BESTORE in the nuts category had also been completed. It is not easy to find a market share in the food distribution market.

Ten billion target exam

　　In the case of weak growth of core categories and slowing net profit growth, whether Qiaqia Foods can achieve the goal of "tax-included 10 billion" has become the focus of the industry.

　　It is understood that Qiaqia has set a "ten billion target", that is, in 2023, the overall realization of tax-included sales revenue of 10 billion yuan.

According to industry estimates, the 10 billion target in 2023 is about 8 billion yuan, excluding tax.

　　From the perspective of revenue in recent years, Qiaqia Foods has not yet exceeded the 6 billion yuan mark.

According to the data, from 2018 to 2021, Qiaqia Food's revenue was 4.197 billion yuan, 4.837 billion yuan, 5.289 billion yuan and 5.985 billion yuan respectively.

It can be seen from the above data that it takes nearly two years for Qiaqia Foods to increase its revenue by 1 billion yuan.

Now that there is still a year and a half to go before the goal of "ten billions of tax included", it may be a question mark whether Qiaqia Food can achieve more than 2 billion yuan in revenue during this period.

　　The industry's misgivings about Chacha's goals also seem to be reflected in the capital market.

A few days ago, Qiaqia Foods handed over a semi-annual report card with both revenue and net profit. In the first half of 2022, Qiaqia Foods achieved revenue of 2.678 billion yuan, a year-on-year increase of 12.49%. In the first half of the year, it was attributable to shareholders of listed companies. Net profit was 351 million yuan, a year-on-year increase of 7.25%.

It is worth mentioning that after the release of the semi-annual report, the share price of Qiaqia Foods did not rise but fell. On the second day after the release of the interim report, the share price of Qiaqia Foods quickly hit the daily limit and fell to 47.34 yuan. Until the close, its share price was still higher than before. It fell 9.7% in one session.

　　The loss of investors may stem from the disappointment of previously high expectations.

Many analysts expect Qiaqia Foods' profit this year to be in the range of 1.1 billion to 1.2 billion yuan, while Qiaqia Foods only achieved a net profit of 351 million yuan in the first half of the year.

Under this circumstance, many brokerages lowered their profit expectations for Qiaqia Foods.

Wind shows that from August 18th to 19th, 6 brokerages lowered the profit forecast of Qiaqia Foods this year, and the profit range was lowered from 1.1 billion to 1.2 billion yuan to about 1 billion yuan.

　　"Although the performance has increased, the growth rate is not as good as expected, and the consumption trend has weakened, and the expectations for future growth have weakened. In addition, before the release of the performance report, the market has already pushed up the stock price, and some funds have taken profit after the release." Shen Meng think.

According to the growth rate in the past few years, it is still difficult to achieve the target of 10 billion tax-included sales revenue in 2023.

　　Regarding how to achieve the goal of the "Ten Billion Strategy" in the future, the relevant person in charge of Qiaqia Foods said that in terms of brand, the company will continue to strengthen the publicity and popularization of the nutrition and health of nuts and melon seeds. Nuts are positioned as daily nutritional necessities, and continue to add youth to the brand. Vitality; in terms of products, the company focuses on nut snack food and main channel categories, and implements innovative strategies based on consumer demand; in terms of channels, the company will accelerate the promotion of channel intensive cultivation strategy, build millions of terminals, and realize offline channel digitization , to improve product penetration; in addition, Qiaqia Foods will continue to promote supply chain upgrades, organizational personnel optimization, etc.

　　Beijing Business Daily reporter Guo Xiujuan Wang Xiao / Wen and photo

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