The company struggles to optimize its operational strategies in the face of recurrent Covid-19 outbreaks and an ever-changing e-commerce environment
Chinese snack giant Bestore (603719) (Chinese: 良品铺子) reported on March 21 a revenue of CNY 9.324 billion (USD 1.464 billion) in 2021, up 18.11% year on year, doubling its 2016 revenue.
The company also announced a net profit attributable to shareholders of the listed company of CNY 282 million and a net operational cash flow of CNY 412 million, registering a year-on-year growth of 24.82%.
Bestore started live stream marketing in March 2020 and recorded a 3.62 times higher revenue on Douyin, the Chinese version of TikTok, than that of the previous year.
The company has also cooperated with other social e-commerce platforms like Meituan Youxuan (Chinese: 美团优选) and Xingsheng Youxuan (Chinese: 兴盛优选). Its online revenue in 2021 reached CNY 4.858 billion, up 21.42% year on year.
The snack company opened 619 offline stores in 2021 to bring the total to 2,974 in 179 cities, expanding its national footprint with an emphasis on western China. In total, the company announced an offline revenue of CNY 4.286 billion, up 16.31%.
Bestore invested CNY 39.67 million in research and development, launching 565 new products throughout the year.
China’s snack market size reached over CNY 1.4 trillion in 2021, according to ASKCI (838497) (Chinese: 中商产业研究院), a market research service provider.
Bestore’s rivals generally see an uptick in performance as the industry bounces back from the depths of the pandemic. Qiaqia Food (002557) (Chinese: 洽洽食品) announced a revenue of CNY 5.985 billion in 2021, registering a year-on-year growth of 13.15%.
Three Squirrels (300783) (Chinese: 三只松鼠) posted a net profit of CNY 442.25 million in the first three quarters of 2021, up 67.35% from the same period the previous year.