Just now, the 2021 report card of Aoyou listed in Hong Kong was released. This is also the first annual report issued by Aoyou after Yili took over.
The latest figures show that the revenue of Aoyou last year was 8.873 billion yuan, a year-on-year increase of 11.1%; The net profit attributable to the owners of the parent company was 1.040 billion yuan, a year-on-year increase of 3.6%. Excluding the losses of certain non recurring items and additional inventory provisions in 2021, the profit attributable to equity holders of the company was adjusted to be RMB 1.263 billion, an increase of 16.6% year-on-year compared with RMB 1.083 billion in the same period in 2020. It is worth noting that under the overall weakness of the market, the growth rate of the three core private brands of Aoyou infant formula milk powder – jiabeiaite (China), haipunuokai and nengliduo still reached double digits.
In addition, the sales revenue of Aoyou nutrition business increased by more than 20% year-on-year.
Let’s first focus on the main milk powder industry of xiaaoyou.
According to the results of the report, in 2021, Ausnutria’s private brand formula business continued to grow 12.1% to 7 billion 762 million yuan, mainly because of the “effective marketing strategy and continued benefits from the high-end products in Chinese mainland”. Among them, the most important Chinese mainland market, Ausnutria’s own brand formula milk business revenue increased 13.6% to 7 billion 544 million yuan.
According to the relevant industry data, in 2021, the group’s sales share in the Chinese mainland infant formula industry rose further to about 6.9%, ranking fifth in the infant formula industry. Aoyou said in today’s financial report.
Aoyou Netherlands factory
Among the milk powder with the highest proportion of revenue, the financial report shows that the revenue of Aoyou private brand formula milk powder in 2021 was 4.414 billion yuan, a year-on-year increase of 15.5%.
In terms of business units, the business unit of hiponokai 1897 focusing on the ultra-high-end market (which owns hiponokai 1897 Hezhi, hiponokai 1897 Cuihu and Youlan, etc.) recorded a revenue of 3.182 billion yuan last year, a year-on-year increase of 17.9%. Among them, haipunuo kaihezhi continues to be one of the fastest growing brands of Aoyou, with a year-on-year increase of 22.0%.
As another “general” of Aoyou milk powder, nengliduo also achieved high growth. According to the financial report, nengliduo business unit recorded a revenue of 1.019 billion yuan in 2021, a year-on-year increase of 23.3%. In particular, one of the key brands of nerido, nerido G4, achieved a year-on-year growth of 49.8% in 2021.
Aoyou previously said that it has continuously explored opportunities for high-end and fine differentiation. For example, at the Expo last year, the company announced a number of new milk powder products, including the main HMO (breast milk oligosaccharide) formula and the future version of hipnocai 1897, which is positioned at the ultra-high end; Adopt the upgraded version of A2 milk source, Po Chun, etc.
In addition, Aoyou milk powder has also actively cultivated new fulcrum for growth and extended the layout of children’s powder and adult powder. Children’s milk powder
Take another look at the brand of Aiyou Jiabei and Aiyou Jiayang milk powder.
According to the financial report, after the reform of jiabeiaite channel in 2020, Aoyou’s own brand formula sheep milk powder returned to normal last year, with a revenue of 3.348 billion yuan, a year-on-year increase of 7.8%. Among them, the revenue from the Chinese market accounted for 93.5% of global jiabeiaite sales in 2021, with a year-on-year increase of 11.1%.
According to Frost & Sullivan data quoted by Aoyou today, calculated by retail sales, China’s sheep milk powder market will reach 20 billion yuan in 2020. “Sheep milk powder product jiabeiaite is still the leader in the Chinese market. According to the market research report published by Nielsen, jiabeiaite has accounted for more than 60% of the sales of imported infant sheep milk powder in China for four consecutive years in the past four years.”.
After regaining momentum, jiabeiaite is also working for the “10 billion goal”. 2021 is the 10th year of jiabeiaite entering the Chinese market. At the dealer conference held last year, the brand proposed to impact the annual revenue of 10 billion in the next decade.
Li Yimin, vice president of Aoyou China and general manager of jiabeiaite, said earlier that although the growth of goat milk powder is facing challenges such as the gradual disappearance of demographic dividend and the changing demand of consumers, the proportion of milk powder business in the pregnant, infant and child market is still increasing, the medium and high-end milk powder market is growing fastest, and goat milk is leading the market with a growth rate of three times ahead of the market.
In order to seize the bonus period of the rise of sheep milk powder, jiabeiaite continues to expand its product portfolio. In March this year, the brand released a new product of Xiangyang children’s growth nutrition formula sheep milk powder, with a view to laying out overweight children’s powder through differentiated channels. It is reported that this new product will complement its previously launched Jingying children’s sheep milk powder to meet the diversified and subdivided needs of consumers in different channels.
Year of ending
After gaining a firm foothold in the milk powder industry, Aoyou has also strengthened its efforts to further improve the nutrition and health layout in recent years, and successively settled the probiotics and special medical food sectors.
According to the financial report, in 2021, the revenue of Aoyou nutrition products was 177 million yuan, with a year-on-year increase of 24.5%, mainly due to the continuous rise in the sales of gastrointestinal health care product NC stomach nourishing powder and a series of probiotic related products launched last year. In 2021, Aoyou probiotic related products contributed a total of 84.2 million yuan, an increase of 108.9%.
Xiaoshidai introduced that aiyisen, a brand of Aoyou, completed the upgrade from probiotic solid beverage to instant lactic acid bacteria powder this year. Its new “small orange box” is also the first batch of infant probiotics independently developed in China that adopt the standard of instant lactic acid bacteria. It is worth mentioning that the strain “Lactobacillus rhamnosus mp108” applied to aiyisen’s new products was independently developed by Aoyou and was approved as a new food raw material for infants and young children in 2021.
In addition, in terms of special medical food, xiaoshidai noticed that Aoyou’s first lactose free formula for infants with special medical purposes – hipnocai 1897 “Zhishu” was officially launched this month, marking a zero breakthrough in special medical food in Hunan Province.
Today, Yan Weibin, chairman of Aoyou, said in the financial report that 2022 is the end of the second phase of its “golden decade” plan. The company will focus on the cause of nutrition and health and continue to work hard in R & D and innovation, production and supply, quality control, marketing, customer service, partner empowerment, digitization and intelligence, organization and team building, brand and social responsibility action, enterprise development and so on.
Looking forward to 2022, the company expects that the milk powder industry may enter a new round of reform.
According to the relevant industry data quoted by Aoyou today, the concentration of China’s top three and top ten infant formula industries in 2021 was 43.7% and 82.1% respectively, 4.1 and 4.8 percentage points higher than that in 2020.
Aoyou said today that although the industry competition has become more intense due to the decline in the number of newborns, the leading enterprises under the stock competition have successfully obtained more market share and further improved their market concentration with the help of perfect supply chain system, strong brand effect and rapid response channel service.
Aoyou also expects that due to the decline in the birth rate, the competitive situation of the infant formula industry will not change this year, but it is believed that the head brand enterprises will continue to give full play to the above advantages and harvest more market share, so as to further improve the market concentration. On the other hand, Aoyou is expected to gradually release the demand for delayed childbirth due to the impact of vaccine injection in the next 2-3 years. In addition, the Chinese government’s policy of encouraging three children has gradually taken effect. At present, the industry may have reached the bottom.
Yan Weibin, chairman of Aoyou (information picture)
Yan Weibin also set out a number of key points for 2022 in the financial report today, including realizing the steady growth of core business and brand, completing the secondary formula registration, and ensuring that 100% of core products pass., Expand the global layout of probiotic business, complete R & D, production validation and clinical validation as planned, and obtain corresponding registration.
It is worth noting that Yan Weibin also introduced the key work of Yili after joining Aoyou, saying that through cooperation with Yili, the targets of various collaborative sub projects will be put into practical effect, so as to improve the profitability of Aoyou with the advantages of scale and efficiency.
Xiaoshidai introduced that last October, Yili announced the acquisition of 34.33% shares of Aoyou and became the single largest shareholder of the latter. The above transaction is also the largest investment merger and acquisition between Chinese dairy enterprises in 2021.
According to the research report released by Everbright Securities this month, according to Euromonitor, in 2021, the market share of Aoyou and Yili infant powder by sales was 6.3% / 6.2% respectively, and the total market share was 12.5%. After the merger, they will surpass Nestle (11.7% market share) and become the second in the industry.
The above Everbright Securities Research Report believes that Yili and Aoyou will have synergy in milk sources, supply chains and channels, and the cooperation will help to improve the coverage and market share of Aoyou milk powder. Great Wall Securities previously pointed out that Aoyou’s layout in the fields of nutrition and probiotics will form a good supplement to Yili.