Faced with the pressure of high prices of raw materials, the edible oil giant goldfish chose to raise prices again and again.
At the golden arowana 2021 performance presentation meeting held on Friday, June 9, some investors asked the company how many rounds of price adjustments had been carried out this year and whether there were any price adjustment plans in the near future. Mu Yankui, president of arowana, replied:
"the company's performance in the second quarter is expected to be better than that in the first quarter, with good capacity utilization and steady growth in orders. (edible oil products this year) have adjusted their prices twice. In the face of the sharp rise in international edible oil, they are still considering a third price adjustment in the near future. "
The company's main raw materials, soybeans, soybean oil, rapeseed oil and palm oil, are still at high prices, so the cost in the second quarter will remain at a high level, Lu Yuanyu, financial director of Jinlongyu, said at the briefing.
Quarterly results released at the end of April this year showed that net profit of golden arowana plunged 92.71% to 114 million yuan in the first quarter of this year, the lowest since 2019, after a year-on-year drop of 31.15% in 2021.
In the quarterly report, Golden arowana listed three major factors affecting performance, in addition to the epidemic situation and the high effective income tax rate, with special reference to the impact of raw materials:
In the first quarter of 2022, affected by the drought in South America and the conflict between Russia and Ukraine, the prices of the company's main raw materials, such as soybeans, soybean oil and palm oil, rose sharply, leading to a sharp rise in product costs. although the company raised the prices of some products, it did not fully cover the rise in raw material costs, and the gross profit margin of the company's main products decreased significantly compared with the same period last year.
At a video conference on investor relations activities disclosed in May, investors asked if there were any plans to raise prices this year against the backdrop of rising costs, and the golden arowana executives replied at that time:
The raw materials of rice and flour mainly come from China, so the price fluctuates little by external factors. The recent market of soybeans and oils is also relatively stable, with the exception of individual products, the company has no plans to raise prices on a large scale in the near future.
For this year's sales and profits, executives said that sales this year is expected to be better than last year, because the current situation in industries such as soybean crushing is expected to be better than last year, but a more accurate profit forecast cannot be given.