Yili, a local dairy giant with a strong start this year, is striding towards the goal of “100 billion enterprises”.
On April 28, Yili issued its 2020 annual report. In the challenging year of 2020, the company achieved a total operating revenue of 96.886 billion yuan, an increase of 7.38% over the same period of last year, and a net profit of 7.099 billion yuan, which continued to maintain the growth momentum.
According to the first quarter report of 2021 released in the same period, Yili’s total operating revenue in the first quarter reached 27.363 billion yuan, a year-on-year increase of 32.49%, and its net profit attributable to its parent was 2.831 billion yuan, a year-on-year increase of 147.69%, which was the “strongest quarterly report in history”. In addition, the company also put forward the goal of revenue exceeding 100 billion yuan in 2021.
Yili’s performance in 2020 and the first quarter of 2021
Let’s take a look.
Contrarian growth in 2020
According to the financial report, in 2020, Yili achieved faster growth than the industry in the case of slowing down the overall growth rate of industry sales. Last year, Yili’s operating revenue of liquid milk products increased by 3.20%, milk powder and dairy products increased by 28.15%, and cold drink products increased by 9.35%.
On the one hand, the company’s core products continue to grow.
According to the financial report, the sales revenue of key products such as “Jindian”, “anmuchi”, “Changqing”, “jinlingguan” and “qiaolezi” increased by 9.6% over the same period of last year.
Among them, according to Nielsen data, the retail sales of Jindian increased by more than 20%, ranking first in the high-end white milk segment industry. In the first quarter of 2021, the growth rate of Jindian was more than 30% compared with the same period in 2019. The retail sales of Jindian organic liquid milk increased by 35.1%, accounting for 50.6% of the market share, ranking first in the corresponding market segments.
The data showed that Yili continued to take the lead in normal temperature yogurt, and its market share increased by 3.2 percentage points to 63.1%. In 2020, the growth rate of Yili’s milk powder brand jinlingguan is significantly higher than that of the industry, in which the growth rate of organic Seine dairy is 130%. Meanwhile, the market share of adult powder business and middle-aged and elderly milk powder continues to be the first in the market.
On the other hand, the company’s new business is doing well.
Financial report shows that in 2020, Yili’s new product sales accounted for 16%“ Yili “cheese series products,” Jindian “low-temperature milk, and” jinlingguan “infant formula milk powder after formula upgrading have become the new growth points of the company.
Among them, in the cheese business, the data shows that the total revenue of Yili cheese products in 2020 rose 812.56% year on year, mainly due to “its own hardware advantages” and “accurate control of consumer demand”. While actively expanding the subdivision of children’s cheese, Yili also launched the first “suckable cheese” (liquid cheese in the field of processed cheese) in China to attract new users.
Yili launched last year “ Cheese to suck
Last year, Yili’s e-commerce business has also become a “powerful engine” for its performance growth.
Data show that in 2020, Yili’s e-commerce business revenue will increase by 55% compared with last year, and the retail market share of normal temperature liquid milk on e-commerce platform will reach 28.1%, ranking first in the segment market of normal temperature liquid milk on e-commerce platform.
Yili pointed out in the financial report that last year, it actively expanded new retail models such as “community service”, “community marketing” and “o2o home”, strengthened strategic cooperation with e-commerce platforms, seized the development opportunities of township market, continuously improved the level of channel penetration, promoted the rapid recovery and growth of the company’s overall business, and achieved the strategic goal of “entering the top five global dairy companies” ahead of time.
According to the financial report, Yili served nearly 1.096 million villages and towns last year, an increase of 5.5% over the previous year. At the same time, Kaidu zero research data show that as of the end of December 2020, Yili’s market penetration rate in normal temperature liquid dairy products was 84.7%, up 0.4 percentage points over the same period of last year.
At the same time, Yili’s overseas business is also steadily advancing. According to the financial report, the main construction of the company’s plant in Indonesia has been completed in 2020; Annual sales in Thailand grew 68% year on year.
Sprint for “100 billion” in 2021
In 2021, the dairy giant made a good start and gained “the strongest quarterly report in history”.
This also gives Yili the confidence to achieve a higher goal this year. Xiaoshidai noticed that in its financial report, the company said that according to the development of the industry, it plans to achieve a total revenue of 107 billion yuan and a total profit of 9.3 billion yuan in 2021.
If successful, it means Yili will become the first local dairy enterprise with annual revenue of 100 billion.
“The business objective is affected by the future business environment, and there is certain uncertainty, which does not constitute a performance commitment to investors. Investors should pay attention to the investment risk.” Yili said in the financial report.
Jindian’s organic A2 pure milk product launched this year
In order to achieve the revenue target of over 100 billion yuan, Yili said in the financial report that it will focus on the following work in 2021:
1. Adhere to the creed of “Yili is quality”, continue to lead the healthy and sustainable development of business with high-quality products and services.
2. Accelerate product innovation and continue to actively develop new business in the field of health food.
3. Continue to explore overseas markets and promote the steady development of international business.
4. Accelerate digital transformation and improve Omni channel operation capacity.
5. Speed up the pace of milk development, improve the ability of supply chain service support.
6. We will continue to build a “global healthy ecosystem” to achieve collaborative development and win-win cooperation with our partners.
7. Continue to “excellence, the pursuit of excellence, and constantly surpass ourselves” as the requirement, consolidate the company’s cultural foundation of Evergreen Foundation.
In terms of product innovation, the company has taken many actions since this year.
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Yili gains “the strongest quarterly report in history”, and plans to achieve revenue exceeding 100 billion in 2021!