China Food

Master Kang sent the Zhongbao today! Instant noodles are featured with diversified flavors, and drinks are added without sugar

Although the first half of this year experienced the challenges of multiple factors such as sporadic outbreak of epidemic in many places and rising cost of raw materials such as palm oil, Master Kang still handed over a report card of revenue growth.

According to the 2022 semi annual report released by Master Kong Holdings this afternoon, the company’s revenue in the first six months of this year increased by 7.97% year-on-year to 38.217 billion yuan (RMB, the same below). The company seized the opportunity of home consumption driving the growth of group purchase and o2o mode in the community, and promoted the two core businesses of instant noodles and beverages to achieve a year-on-year growth of 6.49 in the first half of the year against the industry recession

Despite the increasing pressure on the industry’s operation under the rapid changes in the external environment, Master Kang still proposes to continue to invest in food safety, brand, full link digital capability and green low-carbon development, so as to build a core competitiveness with scale, brand, innovation, system and talents as the pillars, continue to maintain resilience and achieve stable operation.

Let’s take a look at the details.

Instant noodles outperform the industry

Master Kang’s gross profit margin in the first half of the year was 1.253 billion yuan, a year-on-year decrease of 38.42%. However, the growth of the two major businesses of instant noodles and beverages still outperformed the industry.

Let’s take a look at the report card of instant noodles.

According to the financial report, Master Kang instant noodles achieved a revenue of 13.548 billion yuan in the first half of the year, a year-on-year growth of 6.49%, accounting for 35.45% of the group’s total revenue. According to Nielsen data, in the first half of this year, the overall sales volume of the instant noodle industry declined by 5.4% year-on-year, and the sales volume declined by 1.3% year-on-year. During the reporting period, the sales volume of Master Kang’s instant noodles accounted for 44.6% in the market, and the sales volume accounted for 46.7%, ranking first in the market.

According to Master Kang, in the first half of the year, the company successfully combined the demand for large packaging in the home consumption scene to promote the steady growth of sales volume of Master Kang’s big barrels / large food bags. Master Kang’s one and a half times series, which focuses on large portions, also introduced new flavors of tomato egg beef noodles, achieving rapid growth in sales. In terms of high-end product layout, the company has launched a number of new noodles, including dry noodles and burning soul noodles.

However, due to the increase in the prices of raw materials such as palm oil, wheat, PET particles and international oil prices during the reporting period, the overall gross profit margin of the instant noodle business and the profit attributable to the shareholders of the company decreased.  

Xiaoshidai noticed that Haitong international pointed out in the latest research report that according to the statistics of wind data, palm oil prices increased by 53.89% in 2022q1 and 70.18% in 2022q2, further accelerating the upward trend compared with 22q1. However, the research report also pointed out that the year-on-year increase of palm oil prices in July was significantly narrowed compared with 2022q1 / Q2, with a year-on-year increase of 7.21%.

“Considering that the palm oil price has dropped at present, we believe that with the easing of palm oil price pressure and the scale effect brought by the steady growth of superimposed sales scale, we are optimistic that the profitability of the company’s instant noodle business will be restored after two consecutive years of pressure.” According to Haitong International Research Report.

New beverage products

In terms of beverage business, Nielsen’s market share data shows that in the first half of this year, China’s beverage industry (including instant tea without milk, milk tea, packaged water, fruit juice, carbonated drinks, functional

First of all, the company proposed to serve the needs of consumers as the highest purpose, based on the core of food safety, continue the stable business philosophy of “cash is king”, and improve the enterprise’s ability to resist risks.

In terms of food safety, Master Kang has continued to invest in the research of product nutrition and health. Recently, his research results of fried / non fried instant noodles have been employed by authoritative food nutrition journals. The two group standards of “hot air dried instant noodles” and “quick frozen noodles” have been approved by the China Society of food science and technology.

Secondly, the company also uses scientific and digital tools to improve the efficiency of the supply chain. For example, Master Kang promotes the integrated full link digital transformation to realize the full link digital management from raw material procurement, production and manufacturing to warehousing, logistics and transportation, improve operation efficiency and further reduce carbon emissions. Thanks to the digital transformation and upgrading of the layout in advance, when external factors such as the epidemic and natural disasters pose challenges to the enterprise’s operation, Master Kang can quickly solve the problems of production and marketing coordination, logistics transportation, raw material supply, etc., and provide material support to the places most in need.

Xiaoshidai also learned that in the “global brand Footprint Report of Kaidu consumer index in 2022” released not long ago, Master Kang ranked among the top three brands preferred by Chinese consumers for the tenth consecutive year, which is inseparable from the company’s long-term continuous investment in brand strength.

Since the beginning of this year, Zhang Yixing, the spokesperson of the joint brand of Master Kang braised beef noodles, has launched products of different specifications of “music clothes”. Wang Yibo, the spokesperson of the joint brand of Master Kang iced black tea, has strengthened the brand image of young fashion, while Master Kang green tea has taken advantage of Yiyang Qianxi and popular IP to carry out integrated marketing, strengthening the impression of the diversified drinking scenes of Master Kang green tea in the lives of young people, such as learning, sports and dinner.

In addition, Master Kang has made new progress in fulfilling corporate social responsibility, supporting environmental sustainable development and practicing the concept of green and low-carbon development.

Data show that since February 7, 2022, Master Kang has continuously provided more than 1.34 million pieces of instant noodles, drinking water, cakes and other materials to Shanghai, Hong Kong, Liaoning and other places, with a total value of more than 4.2 million yuan. Since the outbreak of the epidemic in Shanghai this year, the company has also provided 300000 pieces of instant noodles, drinking water, beverages, cakes and other food and other materials to medical staff of relevant hospitals, government streets and towns, volunteers, shelter hospitals, schools and group employees in Shanghai, with a total value of more than one million yuan.  

Certificate of “enterprise best practice for achieving sustainable development goal 2021” issued by China network.

It is reported that after the launch of the comprehensive carbon inventory project last year, Master Kang has carried out energy-saving and carbon reduction work in many fields. Various types of energy-saving and emission reduction projects have been fully implemented in nearly 100 factories across the country. At the same time, it has taken the lead in the industry to launch non label beverages (including sugar free iced black tea and lemon flavored iced black tea). The carbon reduction of this series of non label products has reached 7%.

Follow the “snack generation” (wechat: foodinc) and reply to “Master Kang” to see the wonderful news.

Master Kang sent the Zhongbao today! Instant noodles are featured with diversified flavors, and drinks are added without sugar

今年以来,康师傅红烧牛肉面联合品牌代言人张艺兴推出“音乐装”不同规格产品,康师傅冰红茶联合品牌代言人王一博强化年轻时尚的品牌形象,康师傅绿茶则借势易烊千玺和热门IP开展整合营销,强化康师傅绿茶在学习、运动、聚餐等年轻人生活中的多样化饮用场景的印象。

此外,康师傅在履行企业社会责任、支持环境可持续发展和践行绿色低碳发展理念方面也取得了新进展。

数据显示,2022年2月7日以来,康师傅持续向上海、香港、辽宁等多地提供了超过134万件的方便面、饮用水、糕饼以及其他物资,总价值超过420万元。自今年上海疫情爆发以来,该公司也已累计向上海各相关医院医护人员、政府街镇、志愿者、方舱医院、学校, 集团员工等提供了30万件方便面、饮用水、饮料、糕饼以及其它食品等物资,总价值超百万元。 

今年年初,康师傅还获得了联合国全球契约组织(UNGC)中国网络颁发的“实现可持续发展目标2021企业最佳实践”证书。

据悉,继去年启动全面碳盘查专项后,康师傅在多个领域开展节能减碳、减排工作,各类型节能减排专案已全面推行至全国近百家工厂,同时在行业率先推出了无标签饮料(包括无糖冰红茶和柠檬口味冰红茶),该系列无标签产品减碳量达7%。


关注“小食代(微信号:foodinc)”,回复“康师傅看精彩消息。

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