Produced by |At the forefront of entrepreneurship.
Author |Wang Yajing.
Edit |Egg total.
American Editor |Wu Yizhong.
Audit |Ode.
Entering 2024, Babi Foods' 2022 restrictive** incentive plan (hereinafter referred to as the incentive plan) has finally been implemented.
On the evening of January 8, Babi Foods announced that the board of directors believes that the grant conditions stipulated in the incentive plan have been fulfilled, and determined that January 8, 2024 is the reserved grant date, and it is proposed to use 1519 yuan of shares, 16300,000 restricted shares**.
Figure Babi Foods Bulletin).
If it is according to the ** price of the day 2008 yuan share calculation, the incentive plan of ** per share discount is only 24%, which is compared with the original 5% discount of Babi Food's plan to motivate employees, the preferential strength is directly "cut in half".
On December 29, 2022, Babi Foods announced that it intends to issue restricted ** to incentive recipients, which is the average trading price of the company's ** per share on the previous trading day (December 28).50% of $01, or 1551 yuan.
Figure Babi Foods Bulletin).
Although later Babi Foods lowered the issuance ** to 1519 yuan shares, but the decline still can't keep up with the company's stock price decline.
Wind data shows that from December 29, 2022 to January 8, 2024, the share price of Babi Foods has increased from 3042 yuan shares slipped to 2008 yuan shares, the stock price fell by a third. If and the intraday high of 55Compared with 22 yuan shares, the stock price fell by 6%.
Behind the falling stock price is the embarrassment of Babi Foods' performance under pressure.
When it comes to Babi Food, many northerners may not be familiar with it, but in East China, with Shanghai as the core, more than 3,000 Babi Food stores selling hot steamed buns, steamed buns, siu mai and soy milk can be found everywhere in the streets and alleys.
Since the opening of its first store in 2003, Babi Foods has just turned 21 this year. At an age when he should be in high spirits, Babi Foods is in a sluggish state.
On the evening of January 5, Babi Foods released a record of investor relations activities, in response to investors' inquiries about "the company's single-store turnover", Babi Foods admitted that the company's current single-store revenue is still short compared with 2021.
2021 happens to be a turning point for Babi Foods.
In the 2021 financial report, Babi Foods announced in a high-profile manner that during the reporting period, the company's single-store turnover increased significantly, reversing the continuous decline since 2017 in one fell swoop, especially in the company's key region East China, where single-store revenue has exceeded the level of 2017.
It was also this year that the company achieved high growth in revenue and profit. According to the financial report, in 2021, the company's operating income will be 137.5 billion yuan, a year-on-year increase of 4106%；Net profit attributable to the parent company was 31.4 billion yuan, a year-on-year increase of 7892%。
Figure: Babi Foods' 2021 annual financial report).
After only one year, Babi Foods' single-store revenue has turned downward again. In the record sheet of investor relations activities disclosed by the company in March 2023, it was clear that the overall single-store revenue in 2022 decreased year-on-year. Until 2023, Babi Foods' single-store revenue has not recovered.
It is reflected in the financial statements, that is, the net profit attributable to the parent company has been declining one after another.
Wind data shows that in 2022 and the first half of 2023, Babi Food's net profit attributable to its parent company fell by 29 year-on-year respectively19% and 3048%。
Figure wind).
The third quarter of 2023 is another turning point for Babi Foods.
According to the financial report, in the third quarter of 2023, the company achieved a net profit attributable to the parent company of 7270960,000 yuan, a year-on-year increase of 35455%, which directly drove the company's net profit attributable to the parent company in the first three quarters of the year-on-year increase of 1552%。
Figure Babi Foods' financial report for the first three quarters of 2023).
Interface News Entrepreneurship Forefront found that whether it is in 2021 or the third quarter of 2023, the skyrocketing net profit attributable to the parent of Babi Foods is inseparable from the help of Dongpeng Beverage.
In 2021, the Company's fair value change generated a gain of 19.6 billion yuan, accounting for 62% of the net profit attributable to the parent company for the current period. Among them, the fair value change income brought by Dongpeng Beverage is as high as 14.7 billion yuan.
Figure Babi Foods Bulletin).
In the first three quarters of 2023, Babi Foods did not specifically disclose the income brought by Dongpeng Beverage, but still made it clear that the surge in net profit attributable to the parent company in the third quarter was due to the increase in fair value change income and operating income caused by the indirect holding of Dongpeng Beverage's shares.
Figure Babi Foods' financial report for the first three quarters of 2023).
However, before Babi Foods did not realize the equity of Dongpeng Beverage, this part of the profits did not really enter the pocket of Babi Foods, and only stayed on the statement, which was just "paper profits".
In the future, will Babi Foods cut its relationship with Dongpeng Beverage? How does the company view the impact of Dongpeng Beverage's stock price changes on profits? In this regard, Jiemian News Entrepreneurship Forefront tried to learn from Babi Food, but as of press time, there has been no reply.
Liu Huiping, the founder of Babi Foods, is an ambitious person, he bravely went to Shanghai in 1998 with 4,000 yuan, and proudly said that "foreign fast food can be sold all over the world, and Chinese steamed buns will also be sold all over the world".
At the 2021 China Catering Industry Summit, Liu Huiping set a goal for Babi Foods - "to become the No. 1 brand of Chinese pastry". He believes that "if Babi steamed bread can achieve a sales scale of tens of billions in the future, then Babi steamed bread will not be far from the first brand of Chinese pastry." ”
Today, Babi Food's revenue is still less than 2 billion yuan, which is like a moat with the tens of billions of sales in Liu Huiping's mouth. What's even more regrettable is that Babi Food, which is intended to be the "No. 1 brand of Chinese pastry", can't even get out of the "siege" in East China.
Data shows that since 2021, all the distributors of Babi Foods have come from East China.
In terms of stores, as of September 30, 2023, the number of stores in East China reached 3,313, accounting for 67% of the total number of stores.
Figure Babi Foods Bulletin).
In terms of revenue, since the listing of Babi Foods, East China has contributed more than 8% of its operating income every year.
Figure: Babi Foods' announcement (from left to right, the data of operating income by region from 2020 to the first nine months of 2023)).
Interface News: The Forefront of Entrepreneurship Trying to understand from Babi Food, has Babi Foods changed its goal of becoming the "No. 1 brand of Chinese pastry"? What are the short-term and long-term plans for Babi Foods? However, as of press time, there has been no reply.
Babi Foods is also trying to open up a broader market, while entering overseas, while trying to go out of East China.
According to its official WeChat, in August 2023, Babi Foods' products will be officially listed in more than 20 T&T supermarkets in Canada; In September, the product will be launched in supermarkets in Australia.
At the same time, in June 2023, Babi Foods officially opened the regional market in Hunan Province; In September, the Hefei market was fully opened to join.
According to the plan, Babi Foods strives to achieve more than 1,000 new stores in 2023. Judging from the data in the first nine months of 2023, during the reporting period, the number of new franchised stores of Babi Foods has reached 1,030, and the annual target amount has been completed ahead of schedule.
It's just that while the front is attacking the city, the rear is "lost". In the first nine months of 2023, Babi Foods closed a total of 533 stores, which also means that for every two new stores opened by Babi Foods, one store was closed.
Judging from the final effect, in the first nine months of 2023, the net increase in Babi Food's stores will not even be 500.
On January 10, Huaxin** reminded in a research report on Babi Foods that it is facing risks such as macroeconomic downside risks and store openings that are less than expected.
In the long run, the speed of new stores added by Babi Foods has slowed down significantly. In the first three quarters of 2022, the company added nearly 900 stores; By the end of 2022, the number of net stores added will exceed 1,000.
Figure Babi Foods Bulletin).
This has also attracted the attention of investors. In the mid-2023 survey of Babi Foods, an investor mentioned, "I found that the retention rate of newly opened stores may be low, what is the reason?" ”
This is eventually back in East China. Babi Foods explained that the main reason is that the local brand influence in regions outside East China is not as good as that in East China, and the higher store closure rate in other regions has increased the company's overall store closure rate.
In addition, changes in store rents, contract expiration, and franchisees' personal reasons will also affect the company's store closure rate to a certain extent. Overall,The net increase in the number of the company's stores is actually only about 10% per year.
How to break the strange circle of "can't get out of East China" may be the first threshold for Babi Foods to move towards "the first brand of Chinese pastry".
Babi Foods is trying to find a new way out.
On the afternoon of December 4, 2023, Babi Foods held a pre-made food conference in Songjiang Creative Park, and 11 new products in animal husbandry, poultry and aquatic products were launched in the first round.
Photo: Barbie Foods official website).
In recent years, if you want to ask which segment of the food and catering industry is the most popular, prefabricated dishes must have a place. From the perspective of industry prospects, this is indeed a blue ocean.
According to the "2022 Research Report on the Development Trend of China's Prefabricated Vegetable Industry" released by iiMedia Consulting, the scale of the prefabricated food market has reached 345.9 billion yuan in 2021, a year-on-year increase of 198%, which is expected to exceed one trillion yuan in 2026.
As an enterprise that has been deeply involved in food for more than 20 years, Babi Food's entry into prefabricated dishes is a relatively easy cross-border track, but it is a little late to enter at this time.
As early as 2020, pre-made dishes have begun to become popular. In the past four years, various enterprises have left the market, including Sanquan, Weizhixiang, Qianwei Central Kitchen, Anjing Food, Shuanghui Development, Arowana, Longda Food and other food companies to seize the window opportunity and quickly cut into this track. There are also listed companies such as SF, Midea, and Gree, which have increased the upstream and downstream industrial chain of prefabricated dishes.
Tianyancha data shows that by the end of 2023, there will be more than 60,000 prefabricated food-related enterprises, and the market competition is extremely fierce.
In addition, this point in time is the trough period when the reputation of pre-made dishes has been reversed. Since mid-September 2023, the controversy over "prefabricated dishes on campus" has stirred up thousands of waves, setting off public anxiety and doubts about prefabricated dishes.
Perhaps aware of the changes in the market, Babi Food's pre-made dishes are not directly facing consumers, but choose to cut in from the B-end customers of the existing group meals. According to him, by the end of 2023, the company has basically completed the sample delivery stage of prefabricated food products to existing group catering customers.
Bypassing consumers and directly connecting with familiar group customers is undoubtedly a way to quickly expand the scale of sales. However, it is worth noting that the income contributed by Babi Food's group meal customers is not high.
According to the data, from 1 to 9 years in 2023, the operating income of the company's institutional catering channel will be 24 billion yuan, accounting for only 20 percent of the total operating income23%。This also means that the group meal channel can drive the sales of prefabricated dishes on a limited scale.
Figure Babi Foods Bulletin).
In the future, will Babi Foods expand the audience of pre-made dishes to C-end consumers, or continue to tap B-end customers? Are there any goals for pre-made dishes? According to this, Jiemian News Entrepreneurship Forefront tried to learn from Babi Foods, but as of press time, there has been no reply.
But in any case, it is not easy to make pre-made dishes quickly grow into another carriage that drives the growth of Babi Foods' performance.
Note: The title image in the article is from the photo network and is based on the VRF protocol.