article|Wang Tingyan
Since its launch in 2015, peach and plum bread has been expanding the market, especially in East China and South China, but it has always achieved little success.
On August 12, Taoli Bread released a plan to reduce holdings by controlling shareholders and actual controllers. The announcement stated that the company’s controlling shareholder Sheng Yali, director of the company’s controlling shareholder, intends to pass a block transaction within three months after the three transactions on the date of the announcement. The way to reduce the company’s holdings by 2%, totaling no more than 19.04 million shares.
Although expensive as the "first share of bread", it is hard to escape the "doom" of shareholder reduction and performance decline. Recently, Taoli Bread disclosed its transcript for the first half of the year. According to data, as of June 30, Taoli Bread had achieved operating income of 2.939 billion yuan, a year-on-year increase of 7.32%; net profit attributable to shareholders of listed companies was 369 million yuan, a year-on-year decrease of 11.59%. , Continuation of the first quarter's increase in revenue but not profit.
At the same time, Tao Plum Bread's southward expansion plan is not smooth. It is understood that in the first half of the year, 17 of the 37 subsidiaries of Taoli Bread located across the country were in a state of loss, with a total loss of more than 40 million yuan, and most of the loss-making subsidiaries were in East China and South China. Not only that, but the performance of Taoli Bread in the secondary market this year is also hard to say. As of the close of the evening on August 16, Taoli Bread took advantage of the food sector's callback to close at 32.92 yuan per share, an increase of 8.5%, but it was close to the beginning of the year. Bi is still down quite a bit, a cumulative decline of 21.36% from 41.86 yuan/share at the beginning of the year.
Figure/excerpt from the Internet
Performance decline and gross profit decline
As the saying goes, "downhill is easy,""It’s difficult to go uphill." This is also very applicable to everyone in the capital market. According to the financial data of Taoli Bread’s semi-annual report, Taoli Bread achieved operating income of 2.939 billion yuan in the first half of the year, an increase of 7.32% year-on-year; net profit attributable to shareholders of listed companies 369 million yuan, down 11.59% year-on-year; non-net profit attributable to shareholders of listed companies was 338 million yuan, down 13.69% year-on-year. This continued the decline in net profit and the lack of profit growth since the first quarter.
As for the reasons for the decline, Taoli Bread’s previously disclosed performance forecast was attributed to the impact of the epidemic last year and the receipt of various policy subsidies. In fact, Taoli Bread’s performance has shown a downward trend. Last year was an “accident”. The performance is just a continuation of the trend of previous years.
In the past three years, that is, from 2018 to 2020, the growth rate of Taoli Bread’s operating income has slowed down year by year, respectively 18.47%, 16.77%, and 5.66%; net profit in the same period They were 25.11%, 6.37%, and 29.53% in order, which were already single-digit growth rates in 2019. Even with support from multiple sources last year, it was only 4.19 percentage points higher than in 2018. Therefore, there is According to industry analysts, based on the poor performance of the first half of the year, the performance of peach and plum bread in the second half of the year will be under greater pressure, and the previous downward trend may continue. It also continued the previous downward trend. From 2018 to 2020, the gross profit margin of Taoli Bread and Pastry was 39.83%, 39.62%, and 29.88%, respectively, showing a downward trend year by year. Although, Taoli Bread was not announced in the semi-annual report. Its gross profit margin, but according to the calculation of Hydrogen Finance, the gross profit margin of bread and pastry in the first half of 2021 is roughly 26%, and over 95% of its revenue comes from this. However, the gross profit margin has been declining year by year. It is no wonder that the performance is going downhill.
failed to expand
"Intensify efforts to expand into new markets in East China and South China; accelerate sales network refinement and sinking in Northeast and North China" is the focus of Taoli Bread in the first half of the year. Work.In fact, not only in the first half of the year, Taoli Bread has been expanding the market since its listing in 2015, especially the East China and South China markets, but it has always achieved little effect.
As of June 30, 2021, Taoli Bread has 37 subsidiaries across the country, of which 17 are at a loss, and most of them are located in East China and South China. The 17 subsidiaries have accumulated losses of 47,375,100 yuan. Among them, Jiangsu, Shanghai, and Hainan peaches and plums suffered the most losses, with a total of 28,711,800 yuan, and over 60% of the losses came from this.
Data source: Taoli Bread official data
As of the first half of the year, East China achieved operating income of 630 million yuan, accounting for 23.48% of total operating income, a year-on-year increase of 21.05%; South China achieved business Revenue was 242 million yuan, accounting for 8.23% of total operating revenue, a year-on-year increase of 19.21%.
But what followed was a simultaneous increase in operating costs. In the first half of this year, operating costs in East China were 536 million yuan, a year-on-year increase of 38.86%, accounting for 24.83% of total operating costs and 85.08% of operating revenue in East China; The operating cost in South China was 234 million yuan, a year-on-year increase of 50.97%, accounting for 10.84% of the total operating cost, and 96.69% of the operating income in South China. Based on this calculation, in the first half of this year, the gross profit margins of East China and South China were both lower than 20%, and South China may be lower than 5%. Such a low gross profit margin greatly compressed its net profit space.
In fact, the gross profit margin of peach and plum bread in East China and South China has been declining year by year in recent years. The gross profit margins in East China from 2018 to 2020 are 32.07%, 31.12%, and 17.97% respectively; in South China, it is 24.37%, 24.03%, and 9.47%.
Not only that, the gross profit margin of its main source of income in Northeast and North China is also not optimistic.The gross profit margins in Northeast China from 2018 to 2020 are 34.27%, 33.86%, and 28.25%, respectively; in North China, it is 32.6%, 34.35%, and 26.01%. According to Hydrogen Finance, the gross profit margin of Northeast and North China in the first half of 2021 may be around 26% and 22%.
The "central factory + wholesale distribution" used by Taoli Bread has a large initial investment, and it is difficult to achieve profitability in the short term. That is to say, the gross profit margin of Taoli Bread in South China and other places will continue to be sustained. Pressure and further affect its net profit.
market space is gradually shrinking
The peach and plum bread, which has been deeply cultivated in the bread subdivision field for more than ten years, has a great advantage in the industry. According to the report of the Huajing Industry Research Institute, from the comparison of consumption in different countries, my country's bakery industry has more room for growth in the future. In terms of brands, the market share of peach and plum ranked first with 10%, followed by Dali Garden , Panpan , etc. Handicraft workshops accounted for 58.20%, which is still the mainstream of the industry. It can be seen that the bread industry in my country is growing rapidly, but the competition pattern is scattered and the degree of concentration is low. For leading manufacturers such as Taoli, while enjoying the industry growth dividend, they can also grab the market share of small brands and handicraft workshops. The market share is expected to continue to increase, and industry concentration will further increase by then.
Even so, in the face of competitors entering the market, they still have to face greater pressure. The above-mentioned research institute report said that with Dali entering the short-term bread market, it is expected to increase the overall profit of the bread industry in the short term pressure. In 2019, Dali launched the short-guaranteed bread Meibaking Chen, which competed with Taoli Bread in the short-guaranteed bread market, and its price was lower than that of Taoli Bread. Although the market share of Taoli Bread is still the No. 1 in the industry, its gross profit margin and profit have been affected to a certain extent, that is, the gross profit margin and net profit mentioned above have been declining year by year.
In addition to the squeeze from competitors,There are other competitors from the snack food field to compete. It is understood that brands such as liangpin shop and three squirrels have all launched bread products, and the network traffic dividends accumulated in the previous period will also squeeze the short-term bread market to a certain extent.
For short-guaranteed bread, which has a short shelf life, product quality is also one of the important influencing factors. According to Hydrogen Finance, there are not many complaints about peach and plum bread in Black Cat at present, only 29, but most of them are food deterioration and foreign matter. As a food manufacturer, it faces competition from competitors. , Also pay attention to its product quality, after all, product quality is the foundation of an enterprise. Only with the solid backing of product quality can we have the backing and "capital" to compete with competitors.
Figure / cut from the official website of the black cat complaint
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