Challenged by new beverage brands and hit by the pandemic, instant milk tea makers are adjusting their strategies and catching up.
Milk tea and beverage manufacturer Xiangpiaopiao Food Co.,Ltd (Chinese: 香飘飘食品, SH:603711) issued its 2022 earnings preannouncement yesterday.
Xiangpiaopiao Food's total revenues for 2022 were estimated to be around CNY 3.12 billion (USD 460.52 million), down 10.08% year on year. Operating profit stood around CNY 265.49 million, an increase of 16.91% compared to that of 2021. With non-recurring gains and losses deducted, net profit attributable to shareholders was expected to be CNY 170.36 million, up 39.04% from the previous year.
In the preannouncement, Xiangpiaopiao Food attributed the revenue decrease in 2022 to the impacts of the COVID-19 pandemic on the sales of instant milk tea powders. It still saw growth in operating profits because the gross profit of its instant powder products steadily increased and operation and management efficiency improved.
Xiangpiaopiao Food is a beverage product manufacturer founded in 2005 and went public in 2017. The Company produces and sells solid drinks, liquid drinks, dairy products, and other products. Xiangpiaopiao Food operates three brands, Xiangpiaopiao (Chinese: 香飘飘), Meco, and Lan Fong Yuen (Chinese: 蘭芳園).
Other players in the market include You Le Mei (Chinese 优乐美), Lipton, and Uni-President (Chinese: 统一).