Three squirrels made a net profit of more than 338 million in the first three quarters, and the omni-channel layout accounted for 81% of online revenue

Yangtze River Business Daily News ● Yangtze River Business Daily reporter Jiang Chuya

Under the "high-end cost performance", the three structural changes of "business, supply chain and organization" will be promoted, and the goal of "returning to 10 billion" is expected to be achieved by the three squirrels this year.

On the evening of October 10, three squirrels (300783. SZ) disclosed its performance forecast for the third quarter of 2024, and the company is expected to achieve a net profit attributable to the parent company of 338 million yuan to 342 million yuan in the first three quarters, a year-on-year increase of 99.13% to 101.43%.

In the first half of the year, the three squirrels have achieved a "double harvest" of revenue and profits, and the progress of revenue of 10 billion yuan has been successfully more than halfway. During the reporting period, the company achieved operating income of 5.075 billion yuan, a year-on-year increase of 75.39%; The net profit attributable to the parent company was 290 million yuan, a year-on-year increase of 88.57%.

The Yangtze River Business Daily reporter noticed that at the end of 2022, the three squirrels took the lead in implementing the "high-end cost-effective" strategy in the industry, integrating and reorganizing the whole link and all elements to achieve higher quality, more differentiated and more affordable products.

Entering 2024, Three Squirrels' omni-channel revenue will continue to grow, and with the help of national brand potential, the company has formed an online and offline omni-channel sales system.

In the first half of the year, the operating income of the third-party e-commerce platform of Three Squirrels was 4.090 billion yuan, accounting for 81% of the total revenue, of which Douyin's revenue contribution reached 1.224 billion yuan, a year-on-year increase of 180.73%.

At the end of April this year, the three squirrels announced in the equity incentive plan that the company's revenue will reach 11.5 billion yuan in 2024, 15 billion yuan in 2025, and 20 billion yuan in 2026.

It is expected to return to "10 billion revenue"

The front foot issued an announcement to reduce holdings, and the three squirrels released a performance pre-increase report on the back foot to prove their potential to the market.

ON OCTOBER 8, THREE SQUIRRELS ANNOUNCED THAT THE SHAREHOLDER NICE GROWTH LIMITED reduced its holdings of a total of 18,536,400 shares of the company through centralized bidding transactions and block transactions from May 20, 2023 to September 30, 2024, accounting for 4.64% of the company's total share capital, and is no longer a shareholder of more than 5% of the company's shares.

On October 10, Three Squirrels released a performance forecast for the first three quarters of 2024, and the net profit attributable to the parent company is expected to be 338 million yuan to 342 million yuan during the reporting period, a year-on-year increase of 99.13% to 101.43%. Among them, the net profit attributable to the parent company in the third quarter is expected to be 48.1 million yuan to 52 million yuan, a year-on-year increase of 200.45% to 224.81%.

Previously, Three Squirrels had a revenue of 10.17 billion yuan in 2019, becoming the first company in the snack industry with an annual revenue of more than 10 billion, but then fell into a four-year trough, with revenue and net profit declining.

In 2022, Three Squirrels handed over the worst financial report in five years, with an operating income of about 7.293 billion yuan, a year-on-year decrease of 25.35%; The net profit attributable to the parent company was about 129 million yuan, a year-on-year decrease of 68.61%.

In order to save the declining performance, this year, the three squirrels put forward the "high-end cost-effective" strategy, that is, by optimizing the industrial chain, improving production efficiency and reducing costs, while maintaining high quality products and providing cost-effective products.

From 2023 onwards, Three Squirrels will return to growth, achieving revenue of 7.115 billion yuan, a year-on-year decrease of 2.45%; The net profit attributable to the parent company was 220 million yuan, a year-on-year increase of 69.85%.

After the performance showed a recovery trend, the three squirrels proposed in 2023 to make the performance "return to 10 billion" in 2024.

According to the 2024 semi-annual report, in the first half of the year, the three squirrels achieved revenue of 5.075 billion yuan, a year-on-year increase of 75.39%; The net profit was 290 million yuan, a year-on-year increase of 88.57%, and this net profit level has exceeded the whole year of 2019, 2022 and 2023. Its revenue and net profit both hit record highs.

According to the latest performance forecast for the first three quarters of 2024, the three squirrels are expected to achieve a net profit attributable to the parent company of 338 million yuan to 342 million yuan in the first three quarters, a year-on-year increase of 99.13% to 101.43%; The net profit after deducting non-attributable to the parent company was 262 million yuan to 269 million yuan, a year-on-year increase of 206.74% to 214.92%. Among them, the profit in the third quarter is expected to be 48.1 million yuan to 52 million yuan, a year-on-year increase of 200.45% to 224.81%.

Form an online and offline omni-channel sales system

The performance of Three Squirrels returned to the growth trend, mainly due to the company's continuous promotion of the high-end cost-effective strategy. Through omni-channel collaboration and supply chain innovation, the company has enhanced its product competitiveness, and the overall gross profit margin has remained stable.

At present, the two major brands of Three Squirrels are going hand in hand, of which the main brand Three Squirrels achieved revenue of 4.69 billion yuan in the first half of the year, a year-on-year increase of more than 70%, and the new brand Xiaolu Lanlan, which is positioned as a "high-end healthy snack for children", has a revenue of 385 million yuan, a year-on-year increase of more than 60%, and has achieved good profitability for three consecutive quarters.

The comprehensive gross profit margin of Three Squirrels in the first half of the year was 25.85%, an increase of 0.88 percentage points year-on-year. Among them, the gross profit margin of core categories of nuts was 26.55%, an increase of 1.54 percentage points year-on-year.

Three Squirrels made a fortune in e-commerce, and with the help of national brand potential, the company has formed an online and offline omni-channel sales system.

According to the financial report data, from 2019 to 2023, the revenue of the three squirrels from third-party e-commerce platforms will be 9.869 billion yuan, 7.204 billion yuan, 6.479 billion yuan, 4.788 billion yuan, and 4.951 billion yuan respectively, accounting for 97%, 73.56%, 66.31%, 65.66%, and 69.59% of the total revenue respectively.

In the first half of 2024, the operating income of the third-party e-commerce platform of Three Squirrels will be 4.090 billion yuan, accounting for 81% of the total revenue, of which Douyin's revenue contribution will reach 1.224 billion yuan, a year-on-year increase of 180.73%; The operating income of the overall offline distribution business was 669 million yuan, a year-on-year increase of more than 100%, the number of offline stores increased by 50% year-on-year to 300, and the number of dealers increased by 130 in the first half of the year.

Adhering to the strategy of "high-end cost performance", the three squirrels began to rebuild the offline store system and incorporate the mass sales channel into the offline distribution system. In the first half of the year, Three Squirrels has cooperated with Mingming is very busy, snack selection, good sale and other mass merchandiser discount systems.

In 2024, Three Squirrels will launch its own brand community snack store - "Three Squirrels National Snack Store", which focuses on sinking markets and mass sales models. As of the first half of 2024, the company has opened 209 national snack stores, with an operating income of 175 million yuan.