After the results of the first half of the year were released last night, Mengniu received a “big red envelope” in the capital market today. Xiaoshidai noticed that Mengniu’s share price rose 9.16% to HK $35.15 by the end of the day.
At the mid-term performance briefing held this morning, Lu Minfang, President of Mengniu, talked to analysts about how Mengniu coped with external challenges such as the epidemic and inflation in the first half of the year, and also mentioned the strategic direction that the company will focus on in the future. He also said that Mengniu is actively preparing for the upcoming double festival sales season in the second half of the year and the world cup in Qatar.
Let’s take a look at the details.
Accelerating recovery
“In the first half of the year, there was a double-digit growth in the first quarter. In the second quarter, it was affected by the epidemic, so there was a 4% growth in the first half of the year as a whole.” Lu Minfang said at the performance meeting today that the net profit after deducting the one-time profit and loss in the first half of this year was 2.977 billion yuan, a slight increase over the previous year. This was achieved in a relatively difficult environment, so the company is very satisfied with the overall profit.
In fact, in addition to the impact of the epidemic, Mengniu also faced the pressure of rising cost of many raw materials under the global inflation environment in the first half of the year, such as large package powder, dairy raw materials and packaging materials. He said that in order to cope with the rise of raw materials, the company strategically stored a part of large bags of milk powder to ensure the normal supply of all milk powder in the second half of the year and the first quarter of the next year and a reasonable low cost. Therefore, it has some impact on the performance of operating cash flow. “From the perspective of overall operation, it has no significant impact.”.
蒙牛总裁卢敏放
Lu Minfang also pointed out that the impact of the epidemic has some lag effects, and the overall recovery is not as fast as expected, but the performance of individual star products is still bright. For example, the sales of normal temperature and fresh milk in the second quarter began to recover from May to achieve double-digit growth in July, and the overall performance was very positive. “We are still very optimistic about the implementation of marketing and sales, and we have done a very good job in controlling the pace.” He said.
It is understood that the epidemic spread in many places in the first half of the year has had a great impact on the company’s logistics system, and the closing of sales outlets and the reduction of market passenger flow have also become common phenomena. Therefore, it has an impact on Mengniu’s new product promotion and channel expansion speed. In order to meet the challenge of the epidemic, Mengniu has made breakthroughs from intensive cultivation channels, especially the expansion of new retail channels, home business and other new channels. During the reporting period, the overall growth of Mengniu home business exceeded 35%, and the market share of e-commerce reached 27.7%, ranking first in the market share of normal temperature liquid milk e-commerce.
Among them, terenzu won the share of most community group purchases and government purchases through supply guarantee during the epidemic in Shanghai. During the two months of the epidemic, the online and home business channels of daily Xianyu took nearly 50% of the shares, and the shares of home appliance manufacturers reached 50% nationwide. At the same time, as of the end of June, the channel inventory of all businesses was healthy, ensuring the freshness of products.
Lu Minfang also revealed that Mengniu is actively preparing for the Mid Autumn Festival, the national day double festival and the world cup in the third quarter, and considering that the Lunar New Year is early, “there will be some big moves next, and we will work together online and offline.”.
Full category power
From different categories
Affected by the epidemic in the first half of the year, Mengniu’s income from normal temperature yoghurt and milk beverage was challenged, which also had a certain impact on the income of low-temperature yoghurt category. However, he believed that “Xiaoyou of Youyi C and Guanyi milk daily fresh cheese are all very good products”. Therefore, Mengniu’s major strategic adjustment now is to link the real consumption of yogurt with the just need, promote the improvement of yogurt quality such as Youyi C, speed up the expansion and expansion of home business and retail business, optimize the product structure and improve the utilization rate.
When talking about the milk powder business, Lu Minfang frankly admitted that the challenges under the current environment are very huge. The two businesses of Yashili infant milk powder and Bellamy infant milk powder are under pressure, but “they have also found a way to grow”.
He further explained that Yashili should improve the product formula and product quality through the new national standard, and at the same time do a good job in the basic work of the whole sales system. “How to maintain the value distribution of all channels in the case of large inventory and promotion, so that there are profits in all channels, thereby promoting the business to improve in essence, and at the same time increasing the input of products.”.
As for Bellamy, Lu Minfang described that Bellamy’s adjustment has been basically completed. “We hope to complete all of the channels and teams this year. At the same time, we will lay out super high-end lines through new channels of live broadcast platforms such as Tiktok and Kwai. In addition, the most important thing is to list a large number of organic baby food supplements.”. He said that the company attaches great importance to baby auxiliary food. In the future, many kinds of Bellamy organic baby auxiliary food and snacks such as germ rice cakes will be fully listed, which is expected to promote the growth of Bellamy organic brand and business.
Future focus
Looking forward to the second half of the year, Lu Minfang said that the world cup, as the highlight of the second half of the year, will drive the sales of the double festival peak season.
“This year’s Qatar world cup will be the home of Mengniu. We will take advantage of this opportunity to promote the brand and sales. We have also signed two world-class stars, Messi, mbapeh and Mengniu, so it is just the third power of M.” He said that Mengniu has won the Grand Slam of the world cup and other top events. The performance of the women’s football team and the Winter Olympics in the first half of this year also reflects the creativity and marketing ability of Mengniu.
Today, Lu Minfang also talked about the direction of Mengniu’s next focus, specifically including grasping the trend that consumers attach great importance to nutrition and health, strengthening the layout of the silver hair market and seizing the market opportunity of the rapid growth of cheese. He also said that the silver hair market has been laid out at present.
He said that Mengniu has seen the rapid growth of cheese, so it has arranged miaolando, including product innovation in catering and retail. In the future, Mengniu will fully empower miaolando and seize the potential of this growing market. The snack representative noticed that not long ago, Lu Minfang said at the miaokolando investor reception activity that Mengniu took miaokolando as the sole operation platform of the cheese business and hoped that miaokolando would become the absolute leader of the cheese category.
Lu Minfang once again emphasized the goal of “creating a new Mengniu”, and pointed out that in terms of building core competence, Mengniu will still focus on product strength, innovation ability, channel, digital transformation, milk source, organizational support and post investment management.
“I don’t think that some short-term epidemics or fluctuations in the consumer market will affect our goals for the future and the future
Today, Mengniu’s share price rose by more than 9%. Lu Minfang said that there would be great moves in the future
今天，卢敏放还谈到了蒙牛下一步重点发力的方向，具体包括把握消费者高度重视营养健康这一趋势、加强布局银发市场以及抓住奶酪快速增长的市场机遇，又称目前已经对银发市场有所布局。
他表示，蒙牛看到了奶酪的快速增长，因此布局了妙可蓝多，包括在餐饮和零售的产品创新，未来蒙牛将全面赋能妙可蓝多，把这块增长市场的潜力抓住。小食代留意到，不久前卢敏放在妙可蓝多投资者接待活动上表示，蒙牛把妙可蓝多作为奶酪业务的唯一运营平台，希望妙可蓝多成为奶酪品类的绝对领导者。
卢敏放又再次强调“再创一个新蒙牛”的目标，并指出在打造核心能力方面，蒙牛仍将聚焦产品力、创新能力、渠道、数字化转型、奶源以及组织保障和投后的管理上。
“我不认为今天短期的一些疫情或者消费市场的波动会影响我们对于未来的目标，以及未来我们要实现这个目标所要去做的一些策略和能力的打造，我们将坚定的沿着这个方向去执行下去。”他说。
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