In 2017, China's economy maintained stable and positive growth, with GDP up 6.9% year-on-year. As industry benchmarks, FMCG listed companies' performance affects overall economic development. FMCG (Network) compiled the 2017 results of nearly 300 FMCG and related companies listed in Shanghai, Shenzhen, and Hong Kong, ranked them by operating revenue, and exclusively released the "2017 China FMCG Listed Companies Revenue Top 50" list.
New Hope entered the top 10; 44 companies saw revenue increases
The top 50 listed companies by revenue had total revenue of 1,467.311 billion yuan in 2017, with the minimum threshold at 9.661 billion yuan. The first and second ranked, WH Group and Sun Art Retail, achieved revenue exceeding 100 billion yuan. The total revenue of the top 10 was 747.528 billion yuan, up 5.91% compared with the same period in 2016. New Hope entered the top 10, while Wens Foodstuff slipped to 11th place. Among the top 50, 11 companies had revenue exceeding 50 billion yuan, accounting for 22%. In terms of year-on-year changes, 44 companies saw revenue growth, accounting for 88%. Among them, Supply and Marketing Cooperative, Shanghai Maling, and Dakang Agriculture achieved revenue growth of over 50% through acquisitions and resource integration. Six companies saw revenue decline, accounting for 12%. Except for Yurun Food, which saw revenue decrease by 27.81% due to falling pork prices and lower fresh meat sales, the other five saw declines within 10%.
Revenue changes year-on-year
Supermarkets ranked first in both number of listed companies and total revenue
By industry, supermarkets remained the industry with the most listed companies, with 10 companies, accounting for 20%, and total revenue of 292.614 billion yuan. Agricultural products had 6 companies, accounting for 12%, with total revenue of 166.705 billion yuan. Fresh food and liquor each had 5 companies, accounting for 10%, with total revenue of 229.804 billion yuan and 130.452 billion yuan respectively.
Analysis of listed companies by industry
1 WH Group
WH Group (00288.HK) ranked first in the "2017 China FMCG Listed Companies Revenue Top 50". As the parent company of Shuanghui Development (000895.SZ), it achieved revenue of 140.721 billion yuan in 2017, up 3.9% year-on-year. China business accounted for 33.3% of total revenue, while US business accounted for 59.3%. Benefiting from expanded sales in the US and Europe, its packaged meat business grew 6.3% compared with 2016. It also implemented strategic cooperation plans domestically, increasing sales of fresh pork in supermarkets, franchise stores, and catering channels, leading to a 3.8% revenue increase in this segment.
2 Sun Art Retail
Ranked second, Sun Art Retail (06808.HK) had total revenue of 102.320 billion yuan in 2017, up 1.9 percentage points. As of December 31, 2017, Sun Art Retail had 461 stores nationwide. In September, it launched the "Auchan 1 Minute" unattended pickup cabinets in Shanghai. More importantly, in November 2017, Alibaba Group acquired a 36.16% stake in Sun Art Retail for HK$22.4 billion, accelerating online and offline integration. Based on Alibaba's New Retail, Sun Art Retail will upgrade its three core strategies in 2018: digital transformation of stores, multi-format and multi-channel development, and redefining hypermarkets.
3 China Agri-Industries
Ranked third, China Agri-Industries Holdings Limited (00606.HK), a member of COFCO Group, saw its revenue increase 12.6% year-on-year to 70.395 billion yuan in 2017. Focusing on grain and oil food business, it acquired all equity of COFCO Fortune Food Marketing Co., Ltd. from China Foods (00506.HK) for 1.05 billion yuan, achieving upstream and downstream integration of the oilseed processing industry chain. Its oilseed processing business revenue grew 11.5% year-on-year, and it launched "Fortune Nutritionist Edible Blend Oil" as a key product.
4 Eternal Asia
Eternal Asia (002183.SZ) ranked fourth in the "2017 China FMCG Listed Companies Revenue Top 50". In 2017, it achieved revenue of 68.059 billion yuan, up 17.52% year-on-year. Revenue from its broad platform business decreased 10.69% due to continuous optimization and closure of bad business projects; revenue from its 380 distribution platform business increased 24.35% due to continuous layout of strategic integration plans in the circulation field, with revenue from the four FMCG segments of maternal and infant, alcoholic beverages, daily chemicals, and food all increasing year-on-year.
5 Yili Group
Yili Group (600887.SH) achieved revenue of 67.547 billion yuan in 2017, ranking fifth among FMCG listed companies. It has four major product business groups: liquid milk, milk powder, cold drinks, and yogurt. Among them, liquid milk products achieved revenue of 55.766 billion yuan, up 12.61% year-on-year; milk powder and dairy products revenue was 6.428 billion yuan, up 17.83%; cold drink products revenue increased 9.82% to 4.606 billion yuan. In terms of channels, Yili integrated online and offline resources, promoting business development in e-commerce platforms, maternal and infant stores, and convenience stores. E-commerce business revenue increased 130% year-on-year, and retail sales in maternal and infant channels also increased 38.9%.
6 New Hope
New Hope (000876.SZ), mainly engaged in feed production, livestock and poultry breeding, slaughtering, and meat products, ranked sixth in the "2017 China FMCG Listed Companies Revenue Top 50". In 2017, revenue increased 2.77% year-on-year to 62.567 billion yuan. Among them, feed production business achieved revenue of 45.702 billion yuan, up 11.80%; livestock and poultry breeding business revenue was 8.829 billion yuan, up 129.38%; slaughtering and meat products business revenue was 21.917 billion yuan, up 4.47%.
7 Mengniu Dairy
Mengniu Dairy achieved revenue of 60.156 billion yuan in 2017, up 11.86% year-on-year, ranking seventh. It has four business divisions: ambient, low-temperature, milk powder, and ice cream. Liquid milk accounted for 88.1% of total revenue, ice cream 4.2%, and milk powder 4.7%. In the ambient business, Telunsu launched the ultra-high-end gift-grade product Nai Jue 6 Special Milk, and cooperated with Modern Dairy (01117.HK) to launch Xianyu pure milk; in the low-temperature business, it launched new products such as Telunsu high-end yogurt; in the milk powder business, Yashili completed formula registration for 13 series and 39 formulas; in the ice cream business, it conducted online promotion targeting young consumers, with 42 new products launched.
8 Tingyi Holding
Tingyi Holding Corporation (00322.HK) ranked eighth in the "2017 China FMCG Listed Companies Revenue Top 50". In 2017, Tingyi achieved revenue of 58.954 billion yuan, up 6.07% year-on-year. The instant noodle business, accounting for 38.37% of total group revenue, increased 4.91%, consolidating high-priced noodles and developing premium noodles, expanding consumption scenarios with multiple specifications; the beverage business, accounting for 58.95% of total group revenue, increased 6.96%, focusing on evergreen categories and consolidating core products, meeting different consumer needs through multi-price band and specification layout.
9 Yonghui Superstores
Yonghui Superstores (601933.SH), also in the supermarket industry, ranked ninth, achieving revenue of 58.591 billion yuan in 2017, up 19.01% year-on-year. In addition to Yonghui Bravo green-label stores and Yonghui Life, it opened 27 new Super Species stores in 2017, creating an experiential consumption model of "retail + dining + APP". Online, it connected to JD Daojia and promoted the Yonghui Life APP to cover all its formats. At the same time, Yonghui not only received investment from Tencent but also completed increases in stakes in Hongqi Chain (002697.SZ) and Zhongbai Group (000759.SZ).
10 Kweichow Moutai
Kweichow Moutai (600519.SH), mainly selling Moutai liquor and other series, ranked tenth in the "2017 China FMCG Listed Companies Revenue Top 50". Its revenue increased 49.81% year-on-year to 58.218 billion yuan, with Moutai liquor contributing 52.394 billion yuan, with sales volume of 3.02 tons, up 31.80% year-on-year. In terms of sales model, Kweichow Moutai mainly uses regional distribution, supplemented by direct sales. In 2017, the number of domestic distributors increased by 648.
11 Wens Foodstuff
Wens Foodstuff (300498.SZ), mainly engaged in broiler and hog breeding and sales, achieved revenue of 55.657 billion yuan in 2017, down 6.23% year-on-year, ranking 11th in the "2017 China FMCG Listed Companies Revenue Top 50".
12 CP Pokphand
CP Pokphand (00043.HK), mainly engaged in feed business, had revenue of 35.452 billion yuan, up 6.76 percentage points year-on-year.
13 Wuliangye
Wuliangye (000858.SZ) had revenue of 30.187 billion yuan in 2017, up 22.99% year-on-year. In 2017, it optimized its main brand Wuliangye products and created a "4+4" series liquor brand matrix, including four national large single products: Wuliangchun, Wuliangchun, Wuliangtou Tequ, and Jianzhuang, and four regional single products: Wuliang Renjia, Baijia Yan, Youjiu, and Huobao.
14 China Resources Beer
China Resources Beer (00291.HK) saw its revenue increase 3.60% in 2017 to 29.732 billion yuan.
15 Supply and Marketing Cooperative
Supply and Marketing Cooperative (000564.SZ) had revenue of 27.789 billion yuan in 2017, up 91.52%. The revenue growth was due to the completion of asset restructuring, forming a business matrix consisting of six parts: China Supply and Marketing, Kupu Commerce, Zhanghe Tianxia, Daji Supply Chain, Daji Financial Services, and Minsheng Department Store.
16 Tsingtao Brewery
Tsingtao Brewery (600600.SH) saw a slight revenue increase of 0.65% in 2017, reaching 26.277 billion yuan.
17 Tongwei
Tongwei (600438.SH) had revenue of 26.089 billion yuan in 2017, up 24.92%.
18 Lianhua Supermarket
Lianhua Supermarket (00980.HK) had revenue of 25.225 billion yuan in 2017, down 5.4 percentage points.
19 Shanghai Maling
Shanghai Maling (600073.SH), mainly engaged in meat and snack foods, saw its revenue surge 60.63% in 2017 to 22.221 billion yuan due to its acquisition of New Zealand Silver Fern Farms.
20 Bright Dairy
Bright Dairy (600597.SH) achieved revenue of 21.672 billion yuan, up 7.25% year-on-year.
21 Uni-President China
Uni-President China (00220.HK) achieved revenue of 21.297 billion yuan, up 1.50% year-on-year, with beverage business contributing 12.466 billion yuan and instant noodle business 8.163 billion yuan.
22 Baiyunshan
Baiyunshan (600332.SH), mainly producing Wanglaoji herbal tea, saw its revenue increase slightly by 4.58% in 2017 to 20.954 billion yuan.
23 Yanghe
Another liquor company, Yanghe (002304.SZ), had revenue of 19.918 billion yuan, up 15.92% year-on-year.
24 Hengan International
Hengan International (01044.HK), which owns brands such as "Xinxiangyin", "An'erle", and "Qidu Space", had revenue of 19.825 billion yuan in 2017, a slight increase of 2.8 percentage points.
25 Dali Foods
Dali Foods (03799.HK) adhered to a multi-brand, multi-category strategy, with revenue increasing 11 percentage points to 19.799 billion yuan. In 2017, it launched the new "Doubendou" soy milk.
26 COFCO Sugar
COFCO Sugar (600737.SH) achieved revenue of 19.157 billion yuan, up 41.31% year-on-year.
27 Dabeinong
Dabeinong (002385.SZ), mainly engaged in feed business, had revenue of 18.742 billion yuan in 2017, up 11.29% year-on-year.
28 Better Life
Better Life (002251.SZ), a chain supermarket headquartered in Hunan, saw revenue increase 11.51 percentage points to 17.250 billion yuan.
29 Zhongbai Group
Zhongbai Group (000759.SZ) saw a slight revenue decline of 1.04 percentage points to 15.206 billion yuan.
30 Haitian Flavoring
Haitian Flavoring (603288.SH) achieved revenue of 14.584 billion yuan, up 17.06% year-on-year.
Source: FMCG Network -END-