Listed Feed Companies Saw an Increase in Sales, a Stable Gross Profit and A Growth in Profits in 2016

By CnAgri2017-05-15 11:11:54 Print

In 2016, under the background of a slow-down in growth of feed production and sales and industrial consolidation, main listed companies still achieved relatively good operating performance. Owing to a relatively great increase in sales, the market share was expanding; influenced by a drop in feed prices, the year-on-year incomes were mixed, but the net profits ascended obviously; gross profit margin kept stable with some growths and maintained at a relatively good level.

(1) Overall feed sales increased and Most Companies Saw an Increase in Feed Sales

In 2016, feed sales of main listed companies accumulatively approached to 44 million MT, up 8% year on year.

Most feed companies saw an increase in sales. Of which, benefited from the expansion of industrial chain and involvement in farming sector, Jinxinnong’s and Tangrenshen’s sales increased by 34% and 32% year on year respectively. Without the advantages of brand, technique and service, Kongdarl’s and Zhenghong’s feed sales showed the decreasing trend; due to unfavorable weather, feed sales of Tianbang and Tongwei that are mainly engaged in aqua feed only stabilized.

(2)The average industrial gross margin was around 14%, and most companies’ gross profits rose slightly or stabilized

Along with a drop in costs of main feed materials such as corn, fish meal and additives, feed prices were less than 2015, but the decline of feed prices was lowered than that of costs. The average industrial gross margin still maintained at a high level of 14%, and most feed companies’ gross profits improved slightly or stabilized year on year.

(3)The growth of net profits was far higher than that of incomes

Due to a drop in costs of feed materials, feed prices in 2016 were less than 2015. Feed sales of Kongdarl, Zhenghong and New Hope reduced or stabilized, and their operating incomes also decreased year on year. Benefited from the upgrading of product structure, an increase in feed sales and the expansion of cross-industry business, operating incomes increased.

However, except for Kongdarl and Zhenghong, other companies all gained relatively good profits and net profits ascended obviously year on year, of which net profits of Tianbang, Zhengbang, Tongwei and Tangrenshen doubled compared to last year.