---
title: "Want Want 2018 Revenue 20.7 Billion Yuan, Net Profit 3.48 Billion! Ending Weakness, Net Profit Up 11.6%"
description: "On June 18, China Want Want released its 2018 financial report, showing double growth in annual revenue and net profit, marking the first double-digit net profit growth since 2014. In the industry's view, after three consecutive years of revenue decline due to brand and product aging, Want Want initiated a series of product and channel reforms, and the effects are gradually showing."
author: "New Distribution"
publisher: "New Distribution"
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published: "2019-06-19"
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# Want Want 2018 Revenue 20.7 Billion Yuan, Net Profit 3.48 Billion! Ending Weakness, Net Profit Up 11.6%

> On June 18, China Want Want released its 2018 financial report, showing double growth in annual revenue and net profit, marking the first double-digit net profit growth since 2014. In the industry's view, after three consecutive years of revenue decline due to brand and product aging, Want Want initiated a series of product and channel reforms, and the effects are gradually showing.

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**On June 18, China Want Want released its 2018 financial report, showing double growth in annual revenue and net profit, marking the first double-digit net profit growth since 2014.**
In the industry's view, since 2014, plagued by brand and product aging, after three consecutive years of revenue decline, China Want Want initiated a series of product and channel reforms, and the effects are gradually showing.
The annual report shows that in fiscal year 2018 (ending March 1, 2019), China Want Want achieved revenue of 20.71 billion yuan, a year-on-year increase of 2.8%; among which, with the help of innovative product strategy and channel diversification, the three segments of rice crackers, dairy and beverages, and leisure food all achieved growth, and the overall gross margin increased by 2.7 percentage points to 45.4%; in comparison, Dali Foods' gross margin was 38.6% during the same period. This also drove Want Want's operating profit up 16.8% year-on-year to 4.08 billion yuan, with net profit of 3.48 billion yuan, up 11.6% year-on-year.
From a breakdown perspective, in fiscal year 2018, rice cracker revenue was 5.81 billion yuan, up 3.9% from fiscal year 2017; dairy and beverage revenue was 9.73 billion yuan, up 1.6% year-on-year; leisure food revenue increased 3.5% year-on-year to 5.1 billion yuan.
In the industry's view, this round of growth is closely related to the reforms that began at the end of 2017. As one of the earliest leisure food companies to enter the domestic market, China Want Want experienced a long period of rapid development, but from 2014 to 2017, its revenue declined for three consecutive years, with 2016 revenue down 16.5% from 2014.
Shen Meng, director of Chanson Capital, told Yicai that **Want Want's weak performance is due to, on one hand, changes in market demand brought about by consumer iteration, and increased market investment by competitors, putting great pressure on Want Want; on the other hand, under the new situation, Want Want's traditional dealer channel model and its increasingly aging brand and products have weakened its competitive advantage.**
Therefore, starting from 2017, China Want Want began to promote reforms in both channels and products. In terms of channels, it promoted diversification, such as increasing investment in e-commerce, new retail, and special channels; in terms of products, it achieved differentiation through innovation to solve the problems of "not selling well" and aging product brands.
From the 2018 performance, it can be seen that the reforms have achieved initial results. For example, new products played an important role in this round of growth. Among them, the launch of several new rice cracker products drove the Senbei and snow cake categories in the rice cracker business to record revenue highs; the hot sales of the new frozen product Dongchi drove Want Want's ice cream business to grow by 8.1%. At the same time, new products also boosted the gross margins of various business segments.
Diversified channels and new marketing methods drove the growth of traditional products that had previously lacked growth. Among them, Want Want's gift box revenue increased by 6.9%. Want Want milk, which accounts for 90% of Want Want's dairy and beverage business, also grew by 1.7%. Currently, Want Want is further exploring emerging consumer channels including maternal and infant, cold chain, vending machines, and Want Want-themed stores.
It is worth noting that Want Want announced today that its direct wholly-owned subsidiary, Hong Kong Want Want Holdings Limited, as the buyer, entered into a sale and purchase agreement with the seller, San Want Holdings Limited, to purchase all equity of the target company for a total consideration of 50 million yuan (RMB, same below). The target company is mainly engaged in the production and sales of fresh eggs. After the acquisition is completed, the target company will be 100% owned by the buyer and become an indirect wholly-owned subsidiary of the company.
The target company is Poyang County Linwang Forestry Development Co., Ltd., which generated revenues of 481,000 yuan and 10.727 million yuan in 2017 and 2018, respectively.
The acquisition will enable the group to more effectively concentrate and ensure a stable and transparent upstream supply of fresh eggs through the target company, while ensuring the safety of egg supply and more effectively controlling egg quality (in terms of pesticides, hormones, antibiotics, and heavy metals).


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