On the evening of March 23rd, Arowana (300999. SZ) released its 2020 results. According to the report, although it was affected to some extent by the epidemic last year, Arowana still achieved revenue of 654.38+094.922 billion yuan, a year-on-year increase of 654.38+04.2%; The net profit of returning to the mother was 6 billion yuan, a year-on-year increase of 1 1%.
Arowana said in its annual report that the profit in 2020 will increase substantially year-on-year, on the one hand, because the kitchen food business has taken a series of measures, including expanding product sales network, strengthening marketing work, launching high-end products and new products, and increasing factory layout; On the other hand, due to the negative impact of African swine fever on feed raw material business, the domestic pig population has obviously rebounded, and the sales volume, income and profit of feed raw material business have increased.
According to the financial report, due to the epidemic situation in COVID-19, the business segments of Arowana kept growing in 2020, among which the sales of kitchen food reached1212.02 million yuan, up1/0.4% year-on-year; The sales of feed raw materials and oils reached 72.49 billion yuan, up 65.438+08.9% year-on-year. The overall gross profit margin of the company reached 12.33%.
Arowana has a good growth momentum in 2020, mainly due to the company's development concept of deepening channel management and optimizing brand products for more than 30 years, and continuously promoting the sales growth of Arowana products.
As one of the largest agricultural products and food processing enterprises in China, Arowana has achieved global procurement, established a stable supply channel, has an industry-leading production scale, and has a perfect direct sales+distribution model, achieving full coverage of retail, catering and industrial channels.
Nielsen's retail survey data on the national market of small packaged edible oil, packaged flour and packaged rice show that Arowana ranked first in the market share of modern channels during the three years from 20 17 to 20 19.
At present, Arowana has a complete and comprehensive product category, and its business involves retail, catering, food industry, feed raw materials and oil technology. In recent years, Arowana has continuously introduced new products that meet the current consumption viewpoint and trend, such as "zero trans fat" series edible oil and functional noodles. Once the product was listed, it won great praise from consumers.
At the same time, Arowana, with its leading technological advantages and strong R&D strength, constantly promotes the category innovation of kitchen food, and promotes the sales, income and profit growth of its kitchen food by expanding the category and sales volume of high value-added products. In addition, the company has been committed to enhancing brand awareness and product competitiveness.
For many years, Arowana has always paid attention to brand maintenance and adopted diversified brand operation methods, including media advertising, entertainment marketing, food product marketing, cultural marketing, sports marketing or new media marketing. For example, the group's main brand "Arowana" joined hands with the Winter Olympics to redefine the new height of food health, and the group's "Hu Jihua" ancient oil-pressing skill was selected as the intangible cultural heritage of Qingdao.
The financial report shows that during the epidemic period, under the rapid strategic adjustment and overall layout, the sales of small packaging products for household consumption and food public welfare products increased substantially, which made up for the decline in sales of catering channels to some extent, and the overall sales volume achieved steady growth.
For more than 30 years, the sales channel of Arowana has been keeping pace with direct sales and distribution. Through the combination of the two, it has created a nationwide penetration marketing channel in all directions. Online marketing channels are mainly composed of e-commerce platforms such as JD.COM and Tmall; Offline marketing channels include retail channels of distribution and direct selling, catering channels represented by restaurants and hotel groups, and industrial channels dominated by food industry, flour and feed raw materials.
While further deepening the channel layout, Arowana also actively promotes digital transformation and upgrading, and is committed to building a leading catering supply chain platform in China. With the distribution network of digital channels and the advantages of big data, products can accurately reach tens of millions of users. At the same time, Arowana has built a dealer information system through digital information thinking, which can * * * enjoy the dealer's operation management data, grasp the sales and inventory of different products at the first time, and scientifically schedule production, thus improving operational efficiency.
It is understood that as early as 20 13, Arowana opened the Tmall flagship store. According to the data of its official flagship store, the monthly sales volume of more than 20 products exceeds 10,000, the first of which is a functional noodle that is easy to digest and absorb-Arowana plus active fermented hollow noodles. Arowana can clearly grasp consumers' feedback on various products by collecting online sales data. Today, brands such as "Oliveira" and "Hu Jihua" of Arowana have also set up official flagship stores in Tmall.
At the same time, Arowana actively expanded new retail and accelerated the sinking of channels. In terms of distribution channels, Arowana Sink has its own distribution network, settled in e-commerce and fresh-keeping platforms such as JD.COM and Kuailu, and has successively reached cooperation with community retail e-commerce such as Ali Retail Link and JD.COM Xintong Road.
Under the background of consumption classification, each level of products has its corresponding market, so category innovation has become a major development trend in all walks of life. In the rice-flour grain and oil market, with the promotion of catering chain and urbanization, consumers' awareness of food safety and health has gradually increased, showing a consumption trend of choosing brand grain and oil products.
According to the data of Prospective Industry Research Institute, in 20 18, the industry concentration of China edible oil market was high, and the market share of the top four industries reached 63.8%. Among them, Arowana ranks in the first echelon. In rice zoning, high-end rice products have become the trend of production and consumption, and the additional characteristics of rice, such as origin attributes and organic attributes, are increasingly recognized by consumers. At the same time, with the improvement of people's quality of life, the consumption of baking products has increased in recent years, which has also promoted the subdivision and high-end development of flour.
Different times and backgrounds gave birth to timely product categories. Looking back on the grain and oil market 30 years ago, it was in the early days of China's reform and opening up, and consumers bid farewell to the grain and oil rationing system. Arowana, following the trend of the times, took the lead in listing small package oil products in 199 1, which promoted the consumption revolution of small package edible oil in China and changed the impression of kitchen food in consumers' minds. Subsequently, Arowana successfully extended the brand development experience of small packaged edible oil to rice flour category, and launched packaged rice in 2006 and specialized and differentiated packaged flour in 2009.
Small-package kitchen food has become an example of Arowana successfully grasping consumer choice. Relying on the rapid layout of existing channels, Arowana copied its successful experience to other businesses, continuously iteratively upgraded products and expanded new categories. At present, Arowana's brands have covered many series of high-end, mid-end and mass-end, maintaining the leading level in the industry.
In recent years, in order to comply with the trend of consumption upgrading and the increasing awareness of consumers' health, Arowana seized the opportunity to continuously promote the existing high-end products and more high-quality new products, and promote the sales growth of the company's high-quality nutritional products.
Taking the edible oil field as an example, the company has introduced high-end products such as Arowana rice oil, granny pressed rapeseed oil, olive oil and Hu Jihua peanut oil, which have achieved good market performance. According to Nielsen data, Oliveira ranked first in China olive oil market for 9 consecutive years.
Last year, Arowana also cooperated with a number of first-line brands to further deepen the brand channel layout and continuously expand the brand influence. According to China Brand Index data (C-BPI) in 2020, Arowana ranked first in edible oil and flour category.
Arowana, with its leading technical advantages and strong R&D strength, constantly promotes the category innovation of kitchen food, participates in the formulation and revision of many national standards, industry standards and group standards, and has won many awards. By the end of 2020, Arowana had 546 patents, including 259 invention patents, and maintained close cooperation and exchanges with government research institutes, American Association of Oil Chemists, China Cereals and Oils Society, China Nutrition Society and other institutions.
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