China Food

The first annual report of Wei Zhixiang, the “first stock of prefabricated vegetables”, was released: the revenue was 765 million and the net profit was 133 million!

is it easy to make money from prefabricated dishes?

The prefabricated dishes in the trillion yuan market have become popular this year, and many enterprises have poured into many giants, including Yihai Jiali Golden Arowana, Shuanghui, delis, etc.

On the evening of April 28, Wei Zhixiang, the “first stock of prefabricated dishes”, released its annual report for 2021.

What are the figures in this first annual report? What’s the point? What enlightenment does it bring to the prefabricated vegetable industry?

In 2021, the revenue was 765 million and the net profit was 133 million
During the reporting period of 2021, weizhixiang achieved a revenue of 765 million yuan, a year-on-year increase of 23%; The net profit was 133 million yuan, a year-on-year increase of 6%.
Among them, Q4’s single quarter revenue was 194 million yuan, a year-on-year increase of + 20.33%, and the net profit attributable to the parent company was 30 million yuan, a year-on-year increase of – 2.9%. The decline of Q4’s gross sales difference and the increase of management expense rate led to the slower growth of profit than income.
1. Mainly for franchising, the growth rate is slowing down
In terms of product types, during the reporting period, the company’s meat products achieved an income of 533 million yuan, accounting for 70.68% of the annual main business income, including 355 million yuan for beef, accounting for 47.10% of the annual main business income.
From the perspective of regional distribution, East China achieved an income of 724 million yuan, accounting for 96.02% of the annual main business income. It is also a regional brand. North China, central China, southwest and other markets have high growth under the low base. At the same time, it has newly expanded the Northeast market.
From the perspective of sales model, the annual franchise is 350 million / year-on-year + 8.4%, distribution is 130 million / year-on-year + 24.3%, wholesale is 240 million / year-on-year + 31.5%, direct sales is 19 million / year-on-year + 268%, and e-commerce is 15 million.
In 2021, the gross sales difference was – 3.8pct to 19.7% year-on-year, mainly due to the pressure of rising costs, the management expense rate was + 1.04pct to 4.3% year-on-year, and the final net profit margin was – 3.7pct to 15.5% year-on-year.
In terms of production capacity, during the reporting period, the company successfully landed on the main board of Shanghai Stock Exchange, raised funds to promote the construction of new production capacity, accelerated the upgrading of R & D center and deepened the construction of marketing network. At present, the company has achieved full capacity and full sales.
In terms of R & D, weizhixiang’s R & D expenses increased by 79.67% last year, and continued to strengthen new product R & D and new product promotion.
2. Q1 profits exceeded expectations and began to improve
In 2022q1, the revenue was 186 million yuan, a year-on-year increase of + 14.17%, and the net profit attributable to the parent company was 35.691 million yuan, a year-on-year increase of + 21.9%. The profit was slightly higher than expected.
By channel, there were 100 million franchise stores / year-on-year + 28.7%, 1376 franchise stores / net increase of 57 stores at the end of Q1, distribution of 30 million / year-on-year + 2% and wholesale of 49 million / year-on-year – 0.16%. The growth rate of b-end has slowed significantly due to the epidemic since the second half of 2021.
In terms of products, the speed of meat and poultry decreased and aquatic products increased by 51%, which is expected to be slightly affected by the price increase of beef products.
Q1 gross profit margin increased from – 4pct to 24.8% year-on-year. Under the cost pressure, the company took the initiative to respond through product structure adjustment and production efficiency improvement. The sales expense rate was – 2.3pct and the management expense rate was – 0.39pct. At the same time, Q1 interest income was 165 million, and the final net profit margin increased from + 1.7pct to 19.2% year-on-year.
3. Take the initiative to change under the epidemic situation and seize the market opportunity for a long time
In April, with the recurrence of the epidemic in Shanghai and the tightening of control, weizhixiang took the initiative to change and launched the group purchase business after obtaining the guarantee qualification. According to the news, the daily supply is about 3000. Considering the higher unit price of the group purchase package, it is expected to effectively hedge the impact of the epidemic.
With the marginal impact of the epidemic weakening, it is expected that the company’s C-end store operation, b-end customer demand and the progress of new production capacity are expected to be gradually improved. Based on the channel strategic layout in 2021, BC is expected to accelerate synchronously and seize the first opportunity in the industry.
200 + SKU, beef sales account for nearly half
Public information shows that Suzhou weizhixiang Food Co., Ltd., established in December 2008, is a large-scale enterprise engaged in the R & D and manufacturing of prefabricated vegetables in the Chinese market. It has opened more than 1600 weizhixiang stores in major cities and was successfully listed on the Shanghai Stock Exchange in 2021.
As for the situation that the revenue growth is good and the net profit is only a slight increase, weizhixiang explained in the report that during the reporting period, the company’s net profit was affected to a certain extent due to the sporadic distribution of COVID-19, the rise of upstream raw materials, the cost increase in some periods and other factors. However, the company’s business operation remained stable on the whole, and the company’s operating income increased steadily.
The basic production process of prefabricated vegetables is relatively simple. Weizhixiang will thaw the purchased raw materials such as meat, poultry, fish, shrimp and vegetables in its own factory, drain, clean and pick them, and then marinate the ingredients with the configured seasoning for a period of time. After that, it will be quantitatively packaged for sale.
From the perspective of product types, weizhixiang is mainly engaged in the development, production and sales of more than 200 kinds of semi-finished dishes in the three major product categories of meat and poultry, aquatic products and others. The main products include cowboy bones, kung pao chicken, crystal shrimp, iron plate squid and many other classic semi-finished dishes.
During the reporting period, the revenue of meat products was 533 million yuan, accounting for 70.68% of the annual main business revenue, of which the revenue of beef was 355 million yuan, accounting for 47.10% of the annual main business revenue.
The gross profit rate of all major products has declined. The revenue of beef products reached 355 million yuan, with a gross profit margin of 26.93%, a decrease of 4.46 percentage points; Poultry income was 105 million yuan, with a gross profit margin of 25.89%, a decrease of 7 percentage points; Pork income was 57.8094 million yuan, with a gross profit margin of 27.57%, a decrease of 4.16 percentage points;
Mutton income was 15.1305 million yuan, with a gross profit margin of 20.54%; The income of aquatic fish was 98.4728 million yuan, with a gross profit margin of 24.06%, a decrease of 2.42 percentage points; The income of aquatic shrimp was 96.7327 million yuan, and the gross profit margin was 17.44%, a decrease of 1.31 percentage points.
Weizhixiang’s sales model is divided into offline sales and online sales. Offline sales are mainly distribution, with a small amount of direct sales, all of which are buyout sales.
Among them, weizhixiang’s franchise stores realized an income of 346 million yuan, accounting for 45.99% of the annual main business income, and the wholesale channels realized an income of 244 million yuan, accounting for 32.35% of the annual main business income.
At present, weizhixiang has initially opened the e-commerce channel. In 2021, the e-commerce channel achieved a revenue of 15.2159 million yuan, accounting for 1.99% of the annual main business revenue. Dealers realized a revenue of 130 million yuan, accounting for 16.99% of the annual main business revenue.
At the end of the period, there were 1319 franchised stores and 572 franchised dealers in the farmer’s flavor market.
In order to meet the differentiated needs, the company has established a product system with two brands as the core: “taste and fragrance” and “Cuiyu”. The former is mainly for C-end consumers, which are divided into distribution stores and franchise stores; The latter is for b-end wholesale customers such as hotels, restaurants and canteens.
Online sales mainly refers to customers purchasing “weizhixiang” brand products through platforms such as tmall flagship store or JD flagship store.
The imagination of trillion prefabricated dishes
The prefabricated vegetable industry is generally scattered, mainly regional enterprises, with obvious regional characteristics, different sizes, low market concentration and low brand strength.
Therefore, a major feature of the prefabricated vegetable industry is regionality.
Weizhixiang’s annual report shows that during the reporting period of 2021, East China achieved an income of 724 million yuan, accounting for 96.02% of the annual main business income. To this end, zhiweixiang also said that the company is building strategic reserves of new production capacity, synchronous regional expansion and national layout.
Weizhixiang is a guarantee and supply enterprise in Shanghai. Goods can normally enter the epidemic area. Franchisees carry out business in the form of community group purchase. In the first quarter of 2022, the revenue of retail channels (franchise + distribution) increased by 21.6% year-on-year, and the revenue of wholesale business was basically flat. Under the epidemic, the company actively promoted the development of community group purchase and online business and achieved initial results. With the gradual mitigation of the epidemic in East China and the further optimization of logistics, the company’s performance is expected to be further large-scale.
At present, what are the characteristics of prefabricated dishes?
1. Consumption continues to upgrade, and the market volume and quality rise together.
In recent years, the popularity of prefabricated dishes is largely due to the normalization of the epidemic situation, the maturity of the prefabricated dish industry and the continuous improvement of the catering chain rate.
Since 2020, with the influence of “lazy house economy”, the epidemic has accelerated the consumer market’s cognition of prefabricated vegetables. In the Spring Festival of 2022, traditional prefabricated vegetable enterprises have arranged the new year’s Eve dinner market, which further broke out in the prefabricated vegetable market.
2. The rising cost puts forward higher requirements for the efficiency of enterprises. The upstream of the prefabricated vegetable industry is primary agricultural products, and the price fluctuates greatly affected by supply and demand. In the production of prefabricated vegetables, raw materials account for a relatively high proportion of the total production cost, resulting in the industry vulnerable to the price fluctuation of raw materials.
In addition, some packaging materials, labor and logistics costs have increased in varying degrees, and most enterprises have adjusted prices in varying degrees to cope with the pressure of rising costs.
While strengthening the strategic reserve of raw materials, enterprises must also strengthen supply chain management, effectively improve operation efficiency and continuously expand enterprise benefits in continuous improvement. 3. Affected by the COVID-19, the b-end demand has accelerated. In the past two decades, the industry has quietly grown in the domestic b-end catering market. Prefabricated dishes perfectly meet the needs of b-end for cost reduction and efficiency improvement, extreme standardization and high quality.
With the change of social population structure, the aging of population is becoming more and more serious, and the labor cost is increasing year by year. High house rents, fierce market competition, higher costs of food materials and energy consumption, superimposed with the new consumption trend in the post epidemic era, and taking advantage of the accelerated development of the industry, the b-end demand is also expected to enter a new stage of development.
According to the report, the scale of China’s Prefabricated vegetable industry was 345.9 billion yuan in 2021, and the market scale of prefabricated vegetables is expected to reach 1072 billion yuan in 2026. The prefabricated vegetable industry has also become the foreseeable next trillion market.
This industry has also welcomed many players.
In 2021, the upstream and downstream enterprises of prefabricated dishes such as Zhenwei Xiaomei garden and three meals with materials successively obtained financing. Weizhixiang and Qianwei central kitchen, which are mainly engaged in prefabricated dishes and catering supply chain, have also been listed in a shares. In January 2022, the tongue tip workshop of the prefabricated vegetable entrepreneurship project of Lu Zhengyao, founder of Ruixing coffee, began to fully recruit franchisees.
From the perspective of the overall competition pattern, the market of prefabricated vegetables is still relatively scattered and the concentration is not high. The participating enterprises can be roughly divided into professional types, such as weizhixiang, haodelai, lvjin food, Ruyi Sanbao, looking for food materials, etc. the product types are relatively rich, and they are oriented to b-end and C-end customers at the same time; Catering types, such as Xibei, Haidilao, Guangzhou Restaurant, Meizhou Dongpo, etc. the company’s main catering business has certain advantages in brand and dish research and development, but the overall business volume is small; Supply chain type includes Fucheng Co., Ltd., Zhengda food, Shengnong food, etc; E-commerce type includes box horse, Ding Dong and so on.
Head picture source: taste knows fragrance



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