Earnings releases illustrate consumption downgrade

Anjing Foods, a publicly listed maker of frozen food products, reported H1 revenue rising 35.5% year on year, while net profits surged 30.4%. The company’s stock rose by nearly 5% in trading on Tuesday. 

In terms of product categories, the company said it saw the largest increase in revenue from its flour and rice products, while revenue from meat products fell slightly compared to last year.  

The company said in the first half of the year, logistics and transportation in eastern China were disrupted due to extended lockdowns and freight prices increased substantially. They noted that consumer demand in that region remained sluggish and sales to retailers were negatively affected.  

In contrast, sales of products directly to consumers increased and household demand improved. This expansion was seen mostly in low end products like rice and flour, but also in more expensive products such as seafood ingredients for hot pot dishes.  

Anjing is the latest in a series of earnings releases which illustrate the changing shifts in diets and food consumption due to Covid lockdowns and consumers downgrading their consumption amid a slowing economy.