According to the Zhitong Finance App, Dacheng Foods (03999) announced its results for the nine months ended September 30, 2023. The group obtained operating income of 4.834 billion yuan (RMB, same below) during the period, an increase of 7.1% over the previous year; profit attributable to shareholders of 666.04 million yuan, an increase of 1.2% over the previous year; and basic profit per share of 0.066 yuan.
The announcement said that in the first three quarters of 2023, the revenue and gross profit of the food business increased by 10% and 14.5%, respectively. In the third quarter, the overall operating income and gross profit of the food business increased by 6.8% and 15.5% year-on-year, respectively. The increase in food performance is mainly due to the steady growth of domestic food sales. The operating income and gross profit of domestic food products in the third quarter increased by 14.6% and 16.7%, respectively.
The domestic food team continues to increase direct customer development efforts, develop more strategic customers through joint development of customized products and comprehensive supply chain services; continue to increase resource investment in retail channels and increase customer stickiness through C-end brands; continue to increase investment in application R&D, keep up with market demand, continuously explore new processes, broaden product categories, and strive to create more large products; improve supply chain efficiency and better serve the future growth needs of major customers through digital transformation. The consolidation of these basic benefits has provided a strong guarantee for the release of production capacity at the new Bengbu food factory, which was put into operation in the third quarter of this year. Food export performance in the third quarter declined year-on-year due to the depreciation of the yen and Thailand's competition with low prices for Japanese exports. The international food business will continue to be deeply involved in the Japanese market, and at the same time, it will also step up development efforts in export markets other than Japan to spread the risk of excessive concentration of export markets and export customers.