**-01- Food Nestle Q1 Revenue 151.4 Billion Yuan, China Sales Double-Digit Decline Nestle, the world's largest food company, reported its Q1 2020 results. Total revenue declined 6.2% to CHF 20.8 billion (approximately RMB 151.4 billion), compared to CHF 22.2 billion in the same period last year. Benefiting from consumer stockpiling during the pandemic, organic sales grew 4.3% in Q1, better than expected. By segment: beverages (liquid and solid) CHF 5.44 billion, nutrition and health CHF 3.058 billion, cooking CHF 2.952 billion, dairy and ice cream CHF 2.642 billion, confectionery CHF 1.632 billion, and water CHF 1.59 billion. China saw a double-digit decline, with products like Yinlu peanut milk and canned congee, Hsu Fu Chi confectionery, and ice cream experiencing declines. Wyeth infant formula, especially the S-26 series, also shrank. However, infant cereals and Purina PetCare achieved double-digit growth. E-commerce grew double digits, helped by Nescafe and Starbucks. Danone Q1 Revenue 47.8 Billion Yuan, Up 3.7%; China Water and Beverages Down 40% Danone reported Q1 2020 sales of EUR 6.2 billion (approximately RMB 47.8 billion), up 3.7% year-on-year, beating expectations. Due to the pandemic's impact on out-of-home consumption and supply chains, Danone's water and beverage business in China saw sales decline about 40% in Q1, in line with expectations. However, Danone's specialized nutrition business in China grew well, unaffected by the pandemic, driving overall specialized nutrition growth of 7.9%, the fastest among its segments. Kraft Heinz: Q1 Net Profit Down 6.7% Kraft Heinz Q1 sales were $6.157 billion, up 3.3% year-on-year. Net profit was $378 million, down 6.7%. US sales were $4.495 billion, up 6.4%; Canada sales were $361 million, down 19.8%; international sales were $1.3 billion, up 1.3%. Adjusted EBITDA was $1.415 billion, down 1%. Mondelez International: China Market Share Up 7% in Q1 Mondelez reported Q1 2020 results. Net revenue was $6.707 billion, up from $6.538 billion a year ago. Net profit was $753 million, down from $914 million. In China (which accounted for 1.9% of revenue in 2019), business slowed in February but recovered in March, with Q1 growth exceeding 3% year-on-year. As consumers shifted to trusted brands, market share in China rose 7%. Looking ahead, Q2 maintenance costs will rise, and Q2 performance may be worse than Q1, possibly negative. However, strong brands and consumer focus on quality may help gain market share during the pandemic. Unilever: First Double Decline in Asia-Pacific in Q1 Due to Pandemic Unilever reported Q1 2020 results: global sales of EUR 12.4 billion (approximately RMB 94.561 billion), up 0.2% year-on-year. In Asia-Pacific, Q1 sales were EUR 5.7 billion (approximately RMB 43.53 billion), down 3.7% year-on-year, with volume down 3.4%. This marked the first double decline in revenue and volume in the region in recent years. Food and tea revenue was EUR 4.4 billion (approximately $4.94 billion), down 1.7%. Home care sales were EUR 2.7 billion (approximately RMB 20.619 billion), up 2.4%, with volume up 2.6%; Cif surface cleaners and Domestos bleach saw double-digit growth. Beauty and personal care underlying sales grew 0.3%, with Vaseline growing around 5%. Associated British Foods ABF reported interim results for the 24 weeks to February 29. Group revenue was GBP 7.646 billion (approximately $9.59 billion), up 2%. Adjusted operating profit was GBP 682 million, up 2%. Kellogg's Kellogg's reported Q1 2020 results. Net sales were $3.412 billion, down from $3.511 billion a year ago. Net profit was $347 million, up from $282 million. Hershey: Double-Digit Profit Decline Hershey reported Q1 FY2020 results. Net sales were $2.0373 billion, up 1.0%. North America net sales were $1.8484 billion; international and other segments were $192.5 million. Net profit was $271.1 million, down 10.9%. Operating profit was $382.8 million, down 12.8%. Hershey said the pandemic had limited impact on Q1. Hershey, incorporated in Delaware on October 24, 1927, is headquartered in Hershey, Pennsylvania. It is North America's largest premium chocolate maker and a global leader in chocolate and confectionery. Products include chocolate and candy, baking ingredients, toppings, and beverages, with over 80 brands. Operating segments include US, Americas, Asia, Europe, Middle East, and Africa. Nissin Foods Q1 Revenue HK$885 Million, Up 10.63% Nissin Foods reported Q1 results for the three months ended March 31, 2020: revenue of HK$885 million, up 10.63% year-on-year; gross profit of HK$284 million, up 7.91%. The pandemic drove strong sales of cup noodles in mainland China and bagged noodles in Hong Kong (mainly Cup Noodles and Demae Itcho brands), increasing revenue. Lower costs related to volume growth also boosted profit. Haitian Flavoring: Revenue and Profit Both Grow Haitian Flavoring reported Q1 2020 results: revenue of RMB 5.884 billion (approximately $827 million), up 7.17%; net profit of RMB 1.613 billion, up 9.17%. Soy sauce revenue was RMB 3.484 billion, up 5.81%; sauce revenue was RMB 731 million, up 1.56%; oyster sauce revenue was RMB 963 million, up 4.23%. Sanquan Food: Net Profit Up 541.13% Sanquan Food reported Q1 2020 results: revenue of RMB 2.216 billion, up 16.14% year-on-year; net profit attributable to shareholders of RMB 258 million, up 541.13%. Basic EPS was RMB 0.32, compared to RMB 0.03 a year ago. During the pandemic, restaurants closed, increasing demand for convenience foods, so frozen food companies performed well. Sanquan's Q1 net profit exceeded its full-year 2019 profit (RMB 211 million). Taoli Bread: "Most Expensive Bread Stock in A-Shares" Taoli Bread reported Q1 2020 results: revenue of RMB 1.323 billion, up 15.79%; net profit attributable to parent of RMB 194 million, up 60.47%. Growth was due to: 1) pandemic-driven stockpiling of bread in February and March, boosting retail sales; 2) strong supply chain advantages ensuring production and delivery of core products during the pandemic. With bakery stores closed, short-shelf-life packaged bread served as a substitute, and supermarket channel supply accelerated consumer penetration. Three Squirrels: "Revenue Growth Without Profit Growth" Three Squirrels reported Q1 2020 results: revenue of RMB 3.412 billion, up 19% year-on-year, but net profit attributable to shareholders fell 24.58% to RMB 188 million. Its 2019 annual report showed revenue of RMB 10.173 billion, up 45.3%; net profit of RMB 239 million, down 21.43%. The company said that despite the pandemic, it ensured steady business growth, but offline business suffered from low foot traffic, and online business was affected by transportation issues. -02- Beverages and Dairy Coca-Cola Q1 Revenue 60.9 Billion Yuan, Down 1% In Q1 2020, Coca-Cola revenue was $8.601 billion (approximately RMB 60.9 billion), down 1% year-on-year; net profit was $2.795 billion (approximately RMB 19.789 billion), up about 64%. Unit case volume for water, sparkling beverages, and sports drinks grew 2%; but sparkling soft drink volume fell 2% in Q1 due to declines in Asia-Pacific (mainly China), despite trademark cola volume growing 1%. Juice, dairy, and plant-based beverages fell 6%; tea and coffee fell 6% due to weak markets and Dogadan tea decline. PepsiCo Q1 Revenue Grows Against Trend PepsiCo reported Q1 2020 results: revenue of $13.881 billion (approximately RMB 98.294 billion), up 7.7%; net profit of $1.338 billion (approximately RMB 9.466 billion), down 0.53%. Adjusted profit rose 10% as consumers stocked up on carbonated drinks and snacks. PepsiCo withdrew its 2020 financial outlook due to uncertainty about the pandemic's duration and impact. Yili Q1 2020 Net Profit Halved Yili reported Q1 2020 results: revenue of RMB 20.544 billion, down 10.98% year-on-year; net profit of RMB 1.143 billion, down 49.78%. However, Yili believes that in the medium to long term, the health food industry, represented by dairy, will continue to develop well. Ausnutria Q1 2020 Profit Surge On April 27, Ausnutria Dairy Corporation announced Q1 2020 profit forecast. Expected revenue of approximately RMB 1.910-1.935 billion, up 25.7%-27.4% from RMB 1.519 billion in Q1 2019. Excluding non-cash losses from fair value changes of financial derivatives, adjusted profit attributable to equity holders is expected to be approximately RMB 290-300 million, up 49.1%-54.2% from RMB 195 million. Bright Dairy Bright Dairy reported Q1 2020 results: revenue of RMB 5.134 billion, down 5.84%; net profit attributable to shareholders of RMB 77.1525 million, down 45.35%. Liquid milk revenue was RMB 2.783 billion, down 8.92%; other dairy products RMB 1.833 billion, up 6.83%; dairy farming products RMB 344 million, down 31.22%; other products RMB 142 million, down 0.34%. Suntory Beverage & Food Suntory Beverage & Food reported Q1 2020 results: revenue of JPY 277.2 billion (approximately $2.55 billion), down from JPY 285.7 billion a year ago. Operating profit was JPY 19.8 billion, up from JPY 17.8 billion. Net profit was JPY 12.7 billion, up from JPY 10.7 billion. Monster Beverage Revenue Beats Expectations Monster Beverage reported Q1 2020 results: net sales of $1.062 billion, up from $946 million a year ago. Net profit was $279 million, up from $261 million. -03- Home and Personal Care United States Procter & Gamble reported Q3 FY2020 results: sales of $17.2 billion, up from $16.462 billion a year ago. Net profit was $2.917 billion, up from $2.745 billion. US sales surged 10% due to stockpiling of toilet paper and other products. Kimberly-Clark reported Q1 2020 results: net sales of $5 billion, up 8%, with organic sales up 11%. Operating profit was $904 million, up 38%. Net profit attributable to company was $660 million, up 45%. Adjusted net profit was $734 million, up from $576 million. Colgate-Palmolive reported Q1 2020 results: net sales of $4.1 billion, up 5.5% from $3.884 billion. Net profit was $715 million, up from $560 million. Colgate toothpaste leadership continued with 40.5% global market share year-to-date; manual toothbrushes held 32.1%. Johnson & Johnson reported Q1 2020 results: revenue of $20.69 billion, up 3.3% from $20.021 billion. Net profit was $5.8 billion, up from $3.749 billion. Consumer health sales jumped 9.2% to $3.63 billion. Clorox reported Q3 FY2020 results (quarter ended March 31): net sales of $1.783 billion, up from $1.551 billion. Net profit was $241 million, up from $187 million. Europe L'Oréal reported Q1 2020 results: total sales of EUR 7.225 billion (approximately $7.81 billion), down 4.8% from EUR 7.551 billion. Consumer products sales EUR 3.17 billion, down 3.6%; L'Oréal Luxe EUR 2.464 billion, down 9.3%; Active Cosmetics EUR 840 million, up 13.2%; Professional Products EUR 751 million, down 10.5%. By region: Western Europe down 7.7%, North America down 4.8%, Asia-Pacific down 3.7%. Reckitt Benckiser reported Q1 2020 results: net revenue of GBP 3.544 billion (approximately $4.29 billion), up 12.3%. Health revenue was GBP 2.189 billion, including dairy GBP 746 million. Home hygiene revenue was GBP 1.355 billion. Henkel reported Q1 2020 sales: EUR 4.927 billion, down 0.8% due to the pandemic. Beauty Care sales fell 2.6% to EUR 935 million (approximately $1.01 billion); Laundry & Home Care sales rose 5.3% to EUR 1.755 billion (approximately $1.9 billion). Beiersdorf reported Q1 2020 results: group sales of EUR 1.910 billion, down from EUR 1.947 billion. Consumer business sales were EUR 1.581 billion (approximately $1.71 billion). Asia Kao Corporation reported Q1 2020 results: net sales of JPY 337.8 billion (approximately $3.16 billion), down 2.6% from JPY 346.9 billion. Operating profit was JPY 39.3 billion, up 2.8% from JPY 38.2 billion. Net profit was JPY 26.7 billion, up 0.9% from JPY 26.4 billion. Shiseido Company reported Q1 2020 results: net sales of JPY 226.9 billion (approximately $2.12 billion), down 17.1% from JPY 273.6 billion. Operating profit was JPY 6.5 billion, down 83.3% from JPY 38.9 billion. Net profit was JPY 1.4 billion, down 95.8% from JPY 33.5 billion, due to temporary store closures and reduced hours worldwide. LG Household & Health Care reported Q1 2020 results: sales of KRW 1.896 trillion, up from KRW 1.875 trillion. Operating profit was KRW 334 billion, up from KRW 322 billion. Net profit was KRW 234 billion, up from KRW 226 billion. Beauty sales were KRW 1.067 trillion (approximately $866 million), down 6.4%; home and personal care sales were KRW 479 billion (approximately $389 million), up 19.4%; beverage sales were KRW 351 billion, up 5%. AMOREPACIFIC GROUP reported Q1 2020 results: group revenue of KRW 1.2793 trillion (approximately $1.04 billion), down 22.1% from KRW 1.6425 trillion. Operating profit was KRW 67.9 billion, down 66.8% from KRW 204.8 billion. Net profit was KRW 94.8 billion, down 41.9% from KRW 163.3 billion. AMOREPACIFIC Corporation revenue was KRW 1.1309 trillion, down 22.1% from KRW 1.4513 trillion. Operating profit was KRW 60.9 billion, down 67.3% from KRW 186.6 billion. Net profit was KRW 67 billion, down 45.2% from KRW 122.2 billion. Shanghai Jahwa reported Q1 2020 results: revenue of RMB 1.665 billion (approximately $234 million), down 14.8%; net profit of RMB 119 million, down 48.89%. This article was compiled and edited by New Distribution.