The decline in store opening speed has dragged down revenue growth.
Despite a slight decline in revenue in the third quarter, the outbreak of the epidemic at the beginning of the year has determined Yonghui’s outstanding performance throughout the year.
On October 30, Yonghui Supermarket announced its Q3 financial report. The report showed that the company achieved a total operating income of 72.670 billion yuan in the first three quarters a few years ago, a year-on-year increase of 14.36%. The net profit attributable to the parent company was 2.028 billion yuan, a year-on-year increase. An increase of 31.86%, net operating cash flow was 6.070 billion yuan, a year-on-year increase of 165.87%.
In terms of industry, the company’s retail business revenue in the first three quarters was 67.356 billion yuan, achieving a growth of 14.51%, while the service business achieved revenue of 5.313 billion yuan, achieving a year-on-year growth of 12.52%.
But by quarter, Yonghui Supermarket’s third-quarter revenue fell 214 million yuan year-on-year, down 0.95% to 22.154 billion yuan, while Yonghui Supermarket’s revenue growth rate in the first and second quarters was 31.57% and 12.24 %. The growth of Yonghui’s performance in the first and second quarters came to a large extent from its home-to-home business. Yonghui Supermarket has increased its investment in online home-to-home channels since the beginning of 2019. In the first and second quarters, affected by the epidemic, consumer spending scenes shifted to home consumption .
In terms of different channels, the company’s offline channel revenue increased by 4.334 billion yuan year-on-year, achieving a growth of 7.67%. The offline performance growth is far inferior to the online performance growth, and the proportion of online business revenue to total revenue is also It is further increased to 8.8%.
In the first three quarters of the company’s online channel revenue totaled 6.535 billion yuan, a growth rate of 180%, of which Yonghui Life APP was 3.313 billion yuan, and the remaining 3.222 billion yuan came from other apps, Yonghui Life APP The proportion of revenue from online channels increased by 1.37% from the second quarter. Correspondingly, revenue from other online channels from other apps fell by 1.37% from the previous quarter.
Yonghui’s new retail experiment was not smooth, but the outbreak of the epidemic made YonghuiSupermarket issue The business of developing home is like pushing the boat along the river. The company has 965 Yunchao stores nationwide and 405 Mini stores. The stores are basically located in densely populated areas such as commercial circles and large communities, and rely on the warehousing and supply chains established by the stores.The system facilitates Yonghui Supermarket to carry out home-to-home business, and it develops rapidly when it encounters the catalysis of the epidemic.
On August 1, Yonghui Supermarket announced that it had acquired 20% of Yonghui Yunchuang’s shares, and became the controlling shareholder of Yonghui Yunchuang again. The company also regained the operating leadership of Yonghui Life APP. Yonghui Supermarket is bound to increase its investment in Yonghui Life APP to narrow the gap with other Daojia platforms. Therefore, the proportion of Yonghui Life APP’s online channel revenue is expected to further increase.
From an offline point of view, the epidemic has disrupted the company’s store expansion plan. The company opened 54 stores in the first three quarters, which is less than half of last year’s total and less than half of the company’s annual target. The company is expanding its Yonghui Mini business format. In the first three quarters, 125 Yonghui Mini stores were net closed, which was one of the important reasons for the decline in Yonghui Supermarket’s revenue in the third quarter.
On the one hand, the third quarter is the traditional off-season for consumption. On the other hand, as the epidemic enters the normalized prevention and control stage, the time of residents’ living at home has been greatly shortened, and the consumption scene at home has decreased. This has caused Yonghui’s blowout performance growth during the epidemic period to be unsustainable. However, the performance growth in the first and second quarters is huge, and the fourth quarter is the traditional peak consumption season. Yonghui Supermarket’s outstanding performance for the whole year of 2020 has a sufficient foundation.