On March 23, Jianhe International Holding Co., Ltd. (hereinafter referred to as “Jianhe group”) officially announced its annual performance in 2020. In 2020, the group’s revenue increased by 2.5% year on year to 11.19 billion yuan, and its adjusted net profit increased by 10.1% to 1.18 billion yuan. However, from the results of the past years, the growth of the group’s revenue is slowing down.
A reporter from Beijing business daily combed the performance of Jianhe group in recent years and found that its revenue growth rate has declined for three consecutive years. According to the data, from 2018 to 2020, the revenues of the group were 10.133 billion yuan, 10.925 billion yuan and 11.19 billion yuan respectively, with year-on-year growth rates of 25.2%, 7.8% and 2.5% respectively.
In the view of dairy expert song Liang, the slowdown of Jianhe group’s revenue growth is mainly affected by the external environment and internal sales. From the external environment, firstly, the cross-border purchasing business of the group was hit by the epidemic, secondly, the marketing cost was increased due to the intensified market competition, and finally, the decline of birth rate also had a certain impact on the group’s performance; from the internal development, the group increased its efforts in product adjustment, and vigorously developed pet food and nutritional supplements, but the above-mentioned industries were still weak Business is still in its infancy, and motor sales are relatively weak, resulting in signs of slowing performance growth.
As for the performance change, the group said in the announcement that the growth of the group’s performance was mainly driven by the sustained strong growth of online sales, channel expansion and demand for immune products, which led to double-digit revenue growth in mainland China. However, due to the travel restrictions and logistics challenges, the Australian and New Zealand market of Jianhe group is still difficult.
The group mainly has two business segments, BNC and ANC. Among them, BNC business including infant formula, probiotic supplements, diapers and other infant products had a revenue of 7.3 billion yuan in 2020, a year-on-year increase of 5.3%; ANC business including Swisse and other care products had a revenue of 3.868 billion yuan, a year-on-year decrease of 3.1%.
As for the reasons for the decline of ANC business, Jianhe group said in the announcement that affected by the continuous decline of purchasing channels in Australia and New Zealand, the revenue from the market segment of Australia and New Zealand was a $260 million, a year-on-year decrease of 32.0%. Among them, the income from purchasing channels of enterprises decreased by 54.6%. Revenue from retail outlets in Australia and New Zealand fell by 14.4%.
Although Jianhe group’s ANC business declined by 6%, it maintained double-digit growth in the Chinese market. According to Jianhe financial report, the Chinese market is the largest contributor to the group’s revenue, accounting for 82.8% of the group’s total revenue, with double-digit revenue growth of 10.0% in the Chinese market. BNC and ANC’s business in China have achieved steady growth. Among them, the annual sales of synbiotic infant formula milk powder in China increased by 2.7%; the Chinese market of synbiotic probiotics increased by 12.7%; the Chinese market revenue of Swisse Swisse rose by 25.4% year on year.
“The group will continue to dig deep into the Chinese market and achieve high-speed growth of multi brand, multi category and multi-channel.” Jianhe group said that in BNC, Jianhe continued to focus on improving the market share of its products online and offline through successful consumer interaction, online live broadcast and other positive digital marketing initiatives and channel construction. ANC, the company will plan to further launch “blue hat” new products, expand the line distribution channel share, stimulate cbec and general trade market more rapid growth.
&Beijing business daily (reporter Qian Yu, Wang Xiao)
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