China Fund News Reporter Yishan
After 8 months, Keming Food, the leader in dried noodles, is going to increase its price again!
It is understood that the price increase is due to the excessive increase in the price of wheat , which has led to an increase in the company's operating costs. Keming Food has decided to increase the sales prices of various series of products starting from July 16, which is this Saturday.
rose another 5%
html On the evening of July 14, Keming Food announced that in view of the excessive increase in wheat prices and rising operating costs, the company, as a leader in high-end noodles, in order to continue to provide consumers with high-quality products and services, promote the health of the market and industry After careful consideration, the company decided to increase the sales prices of various series of products starting from July 16, with an average increase of about 5%.
It is worth noting that in December last year, Keming Food announced a price increase for the first time since its launch.
company announced on November 12, 2021 that in view of the continued rise in costs of flour, packaging materials, transportation, etc., in order to better provide high-quality products and services to dealers and consumers and promote the sustainable development of the market and industry, the company After research and careful consideration, we decided to increase the prices of various series of products of the company. The company will implement the new price policy from December 1, 2021. However, the price increase was not disclosed in the announcement at that time.
In the 2021 annual report, Keming Food bluntly stated that the rising cost of raw materials in the past two years has eroded the company's profits. It means that the raw material of dried noodles is flour, which accounts for about 80% of the production cost, and the raw material of flour is wheat. The rise in wheat prices will directly affect the production cost of dried noodles. The purchase cost of wheat has been rising from 2,420 yuan/ton at the beginning of 2020 to 2,900 yuan/ton by the end of 2021, an increase of nearly 20%. Coupled with the current unstable international situation and restrictions on the import of overseas agricultural products, wheat in the first quarter of 2022 Prices are still rising compared with the end of 2021. For noodle companies with less than 30% gross profit, rising raw material costs have directly eroded the company's profits.
Therefore, just over half a year later, Keming Foods raised prices again. At the same time, the company stated in this announcement that this product price adjustment may have a certain impact on market sales. The impact of the price adjustment on the company's future performance is uncertain. Investors are advised to invest rationally and pay attention to risks.
just released a profit announcement
Public information shows that Keming Food was founded in 1997. The company focuses on the research and development, production and sales of rice and flour products, and has gradually grown into a leader in the noodle industry. Currently, Keming Food’s market share is around 10%, mainly The products include noodles, flour, convenience foods and other products, among which noodles products account for the highest proportion. The company's representative brands include "陈克明", "金McKu", "五谷道场", "Laiwan Noodles", etc.
html On the evening of July 11, the company disclosed its performance forecast for the first half of the year. Data showed that it is expected to achieve net profit attributable to the parent company of 78 million yuan to 117 million yuan in the first half of the year, a year-on-year increase of 80.89% to 171.33%; it is expected to achieve net profit after deducting non-attributable net profit to the parent company in the first half of the year. Profit ranged from RMB 70 million to RMB 105 million, a year-on-year increase of 242.55% to 413.83%. Basic earnings per share range from 0.243 yuan to 0.364 yuan.Keming Food stated in the profit announcement that in the first half of 2022, the epidemic situation has recurred in some areas of the country and industry demand has increased. As a material supply company, the company actively ensures production and supply. At the same time, it continues to increase advertising efforts and actively participate in public welfare activities. , the sales volume and revenue of the main products increased year-on-year, resulting in a year-on-year increase in the company's performance during the reporting period.
In addition, in the first half of 2022, in the face of the continued rise in wheat prices, the company optimized the product structure and took advantage of "small integration", and the gross profit margin of its main products increased year-on-year, resulting in a year-on-year increase in the company's performance during the reporting period.
On the other hand, business community data shows that since the beginning of this year, wheat prices have climbed all the way to a high of 3,249 yuan/ton in April, and then gradually began to fall. With the domestic wheat harvest in June basically beginning and ending, the market supply is relatively sufficient. Since July, wheat prices have dropped to around 3,000 yuan/ton.
