In income stagnation, the profit has declined, can Tomson Better be alive and rejuvenated by online?

This article is based on public information, which is used only as information exchange and does not constitute any investment advice.

Produced | Company Research Office Large Consumer Group

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Recently, Tomson Bijian, a leading domestic nutritional health product leading company, handed over a very disappointing semi -annual report.

In the first half of 2022, Tomson Beijian's revenue was 4.221 billion, a slight increase of 0.55%, a minimum growth rate in the past ten years, and net profit was 1.048 billion, a year -on -year decrease of 23.55%.

Increase stagnation and profit declined. In the first half of the year, Tomson Bijian's life was a bit less good.

From this semi -annual report, it can be seen that Tomson Beijian's offline channels still face the dilemma of transformation. The online self -operated channel income has a growth rate of nearly 70%, and the proportion has accounted for 20%.

However, the sub -brand of middle -aged and elderly groups, "Jianli Duo", has a fell income decline than the main brand "Tomson Beijian". Popularize the market for young people or become Tomson Beijian.

01 The distribution channels continue to decline, and online self -employment has increased significantly

In the first half of 2022, Tomson Beijian's revenue was 4.221 billion yuan, an increase of 0.55%year -on -year; net profit of returning home was 1.048 billion, a year -on -year decrease of 23.55%; non -net profit of deduction was 1.069 billion, a year -on -year decrease of 14.19%.

The growth rate of 0.55%is the lowest level of Tomson Beijian for nearly 10 years. In a word summarizing this transcript, Tomson's income growth has basically stagnated, and the profit declines significantly.

The "embarrassment" of the performance, Tomson Beijian gave two major reasons. One is that the epidemic has a continuous impact on the sales of offline stores. The domestic offline business is under pressure; the other is that brand promotion and e -commerce platform investment increased compared with the same period last year.

Tomson's sales model can be divided into distribution models and online direct -operated models. Among them, the distribution model is the main source of income of Tomson Beijian, and it is also the main battlefield of offline channels.

In the first half of 2022, as far as the domestic market was concerned, Tomson's offline distribution revenue was 2.552 billion, a year -on -year decrease of 6.96%, and the gross profit margin of offline was 69.16%, an increase of 1.89 percentage points year -on -year; %, Online through the gross profit margin of 68.98%, a year -on -year decrease of 0.31 percentage points.

Judging from this set of data, the gross profit margin of Tomson's offline channels has improved, but the income has not shown signs of stopping. In addition, Tomson's dealer's performance is not satisfactory, the income has fallen sharply, and the gross profit margin has also dropped slightly. Dealers may face certain difficulties in the online transformation.

In the first half of 2022, Tomson Beijian's online revenue was 868 million, an increase of 68%year -on -year, and a comprehensive gross profit margin of 75.30%, an increase of 3.77 percentage points year -on -year, and income increased from 12.3%to 20.6%.

In the semi-annual report, Tomson Beijian laid out e-commerce platforms such as Tmall, JD.com, Vipshop, Douyin, Kuaishou, etc., covering "Tomson Beijian", "Jianli Duo", "LIFE-Space" and so on. Multiple brands. From the perspective of income and gross profit margin, Tomson Beijian's self -operating business has improved faster.

02 Bigger is not good, LIFE-SPACE is remarkable

As far as Tomson Beijian's various brands are concerned, Tomson and "Jianlido" brands, which have more than 70%of the revenue, are weak in revenue in the first half of the year.

In the first half of 2022, the revenue of the main brand "Tomson Beijian" was 2.361 billion yuan, a year -on -year decrease of 7.91%; the revenue of "Jianli Duo" of joint nursing brands was 733 million, a year -on -year decrease of 13.83%.

In the first half of 2022, the domestic revenue of "LIFE-SPACE" was 177 million, a year-on-year increase of 49.69%; LSG's overseas revenue was 377 million, a year-on-year increase of 23.79%.

However, the "LIFE-SPACE" brand accounts for only more than 10 % of Tomson Beijian's revenue. Its incremental increase is not enough to fill the gap between Tomson Beijian and "Jianlido".

In 2019, "Jianli Duo" became a sub -brand with an annual revenue of over 1 billion, but in 2020 and 2021, the growth of "Jianluo" revenue was only 10.4%and 7.5%, respectively, and it was tired. In the first half of 2022, the revenue of "Jianli" fell.

In this regard, the company's management explained at the investor exchange meeting that "Jianlnduo's performance in the past two years is not dazzling, offline channels are continuously affected by the epidemic, and the categories are relatively single.

According to the JD.com self -operated store of the "Jianli Duo" brand, its products can be divided into four categories: "maintenance joints", "skeletal calcium supplementation", "eyesight eye protection", "auxiliary blood lipids", a total of 8 products, products, products, products Richness is not as good as the "Tomson Beijian" brand "Vitality Vitamin" series.

In addition to the above three brands, Tomson Bei Jian also has brand matrix such as "Jiangi" and "Byhealth". According to the investigating minutes, in the first half of 2022, "good health" and "Byhealth" achieved income growth of 70%+and 120%+, respectively.

However, these brands are still in the cultivation period, and the income has not yet reached a certain amount. There is still a certain distance to develop into a "big item".

03 Sales costs have increased by nearly 40 %, and Nutrition Sky Group ROI declines

Compared with the stagnation of income, Tomson Beijian's semi -annual report, the decline in net profit decline is even more dazzling, which leads to the increase in profit rates to increase during the period. In the first half of 2022, Tomson Beijian's sales cost was 1.349 billion, an increase of 38.47%year -on -year, and the sales fee rate was 31.96%, an increase of 8.75 percentage points year -on -year.

Specifically, the sales costs are mainly increased on market promotion and platform fees. In the first half of the year, the marketing fee was 283 million, a year -on -year increase of 147.54%; the platform fee was 306 million, a year -on -year increase of 88.33%.

Tomson Bian Jian explained that the increase in platform expenses was mainly due to increasing investment in new e -commerce platforms and increasing online revenue. This can be confirmed by 68%from online direct revenue.

The increase in market promotion fees is mainly due to the increase in the promotion costs of nutritional groups and online channel digital media.

The "Nutrition Troupe" is a group of nutritionists formed by Tomson Beijian. It can be connected to users with users, and answers questions for users.

In the investigation minutes announced by the company on October 27, 2021, "Thousands of Nutrition Sky Group is an important starting point for terminal development and service model reconstruction to promote the joint creation model of dealers."

However, in the first half of the year, the promotion cost of nutritional groups doubled, but offline channel income fell by 6.97%, and the input -output ratio of nutritional groups fell significantly.

At the recent institutional investigation meeting, Tomson Bo Jian said, "Affected by the epidemic, the implementation of the activity of the Nutrition of Nutrition in the first half of the year lags, the company has adjusted the arrangement of the staff of the Nutrition of Nutrition. As of the end of 2022, there were more than 600 personnel in the off -the -service personnel." According to this calculation, compared with last October, the number of nutritional groups has reduced nearly 40 %.

Offline channels have contributed nearly 70 % of revenue. Although it is currently facing disadvantaged factors such as medical insurance reform and epidemic prevention and control, Tomson Beijian also needs to find a way to rejuvenate offline channels in order to allow the company to develop greatly.

44 The industry is nearly 200 billion yuan, and young people may bring new increments

Although Tomson Beijian is facing a certain dilemma, health care products are still an industry with a scale of nearly 200 billion yuan and continuously growing.

L'Orer data shows that in 2021, the total scale of China's vitamin and dietary supplement (VDS) industry was 189.2 billion yuan, an increase of 6.60%year -on -year. Our Rui predicts that in 2026, the retail sales of the VDS market will reach 251.6 billion, and the CAGR of 2021-2026 will be 5.86%.

In terms of per capita, in 2021, China's dietary nutritional supplements per capita consumption of $ 20, an increase of 6.3%year -on -year, slightly higher than the global average. Room for improvement.

In recent years, the domestic VDS industry has shown two new trends. One is the silver -haired economy brought by the elderly population, and the second is the new demand for dietary health in young people, which may bring new increases to the domestic VDS market.

In 2021, Tomson Bei Jian's share was 10.3%, ranking first; the market share of the second and third place was 6.0%and 5.0%, respectively.

However, in the face of a market with a scale of nearly 200 billion yuan, especially after the online channels are opened, Tomson's competitors are not just infinite, Amway Trey, Perfect, East Ejiao, etc. Food.

At the end of 2015, Hei Shengyuan's large -scale debt acquired Swisse, Australian health care brand, and acquired 83%of the shares of Swisse for RMB 7.6 billion. At the end of 2017, China Feihe acquired VITAMIN World, the third -largest Nutritional Health Supplement Company in the U.S. market with $ 28 million and ranked first in the women's market.

The rise of e -commerce channels is more likely to give birth to some new consumer brands, which is also a potential threat to Tomson Beijian.

05 Lack of a new large single product series, "Every day every day" is not a climate

At present, in addition to the dilemma of offline channels, Tomson Beijian also lacks a new large single product for young people.

In 2019, the "Jianli Duo" brand reached 1 billion annually, but the people focusing on "Jianli Duo" are mainly middle -aged and elderly people. It is even greater than the main brand "Tomson Bijian".

Regarding the adjustment of the "Jianli Duo" brand, Tomson Bei Jian is aimed at the sinking market, and the second is the young people's market.

In May 2022, Tomson Beijian launched a new product of Jianli Duosanosanosanosanol. The productive retail price is relatively low, which is conducive to the sinking of the channel.

In addition, Tomson Bo Jian also lay out a functional food sector aiming at the consumer needs of young people. For example, the establishment of a subsidiary Food said that as the main body of functional food, the "daily plus" brand is launched to position the new generation daily nutritional food brand.

However, Tomson's promotion of the "daily plus" brand does not seem to be attentive. Taking Douyin as an example, the last update of the "Every Daily Food Flagship Store" was still on November 3, 2021. There are only 7 products in Douyin stores, and the platform operation is not active.

On Douyin Live, the main brand "Tomson Bi Jian" starts live broadcast at 7 am every day, and "Jianli Duo" lives live at 8 am a day.The homepage of "Gum" is stated on the live broadcast of from 18:00 to 24:00 every day, but the company's research room found that the number did not start broadcasting until 18:30.Young and online are the trend. From the semi -annual report, Tomson Beijian's online direct -operated channels have grown brightly, but in terms of youth, Tomson Beijian should also work harder to leverage the young people's market.Bring new vitality and growth space for the brand.

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