Cosmetic packaging materials supplier

"This year's business is very bad, not even as good as last year" "The epidemic situation is superimposed with new regulations, which has a great impact on us" "Most companies' business is not good"...

Qingyan learned from a visit to the 58th Guangzhou Beauty Expo held on September 4-6 that it has become a common phenomenon for cosmetics packaging material manufacturers to "do business poorly" this year, and many packaging material companies have registered in the packaging material exhibition hall. But there is no case of exhibiting. And such a "recession" is also reflected in the recent financial reports of various listed packaging material companies.

Margins fall, costs rise

The person in charge of the booths of many packaging material companies complained to Qingyan: "This year's business is not good, and everyone's mentality is relatively pessimistic." A relevant person in charge of a local packaging material company in Guangzhou introduced, "The company has export and domestic This year's export business is better than expected. However, the domestic business is surprisingly poor, mainly because I did not expect it to be worse than last year."

He believes that the ongoing epidemic and various new regulations implemented this year have had a great impact on the entire industry. "Since June, business has declined significantly."

Another packaging material supplier said, "From the obvious decline in popularity at the Guangzhou Beauty Expo this year, I also felt the downturn in the industry." There were empty booths, and many companies signed up but did not come to the exhibition. For example, Shaoxing Chunsili Plastic Industry Co., Ltd. and Guangzhou Mingchuang Glass Packaging Products Co., Ltd. did not arrange exhibitions, but left signs saying "See you next year" at the booths.

In fact, the difficulty of packaging materials business is also reflected in the financial reports released by various packaging materials listed companies. For example, recently Jiaheng Jiahua Co., Ltd. (hereinafter referred to as Jiaheng Jiahua) released its first semi-annual report since its listing. According to the data, the company’s operating income was 514 million yuan, a year-on-year increase of 31.13%; its net profit was 37.19 million yuan. , a year-on-year decrease of 6.72%.

It is understood that Jiaheng Jiahua is mainly engaged in the R&D, design and production of daily chemical products OEM/ODM and plastic packaging containers. Its cooperative customers are Johnson & Johnson, Beiersdorf, Shanghai Jahwa, Bettany, Pechoin and other cosmetics companies.

Jiaheng Jiahua's revenue in the first half of the year rose sharply, mainly due to the increase in cosmetics business revenue. The financial report shows that the company’s cosmetics revenue in the first half of the year was 262 million yuan, an increase of 92.47% year-on-year, the gross profit margin was 21.61%, a year-on-year decrease of 6.72%, and operating costs increased by 110.52% compared with the same period last year; plastic packaging container revenue was 187 million yuan , an increase of 10.66% year-on-year, a gross profit margin of 24.85%, a year-on-year decrease of 1.13%, and an operating cost increase of 12.35% year-on-year; the revenue of home care products was 53.22 million yuan, a year-on-year decrease of 34.50%, and a gross profit margin of 16.36%, a year-on-year decrease of 4% , operating costs decreased by 31.21% year-on-year.

In comparison, among the three major business segments of Jiaheng Jiahua, the gross profit margin of two segments is declining, and the operating costs of these two segments have both increased year-on-year.

Jiaheng Jiahua said that the increase in labor costs, changes in product structure and other reasons led to a decrease in the company's gross profit margin and an increase in various expenses, which were the main reasons for the year-on-year decline in net profit in the first half of this year.

Collective decline in profits

It is worth noting that, in fact, not only Jiaheng Jiahua’s net profit has declined, but in the first half of this year, many cosmetics packaging companies listed on the market are facing a situation of increasing revenue but not increasing profits.

In the first half of this year, Jinsheng New Materials achieved an operating income of approximately 143 million yuan, a year-on-year increase of 12.54%; a net profit of approximately 12.9223 million yuan, a year-on-year decrease of 46.63%. In the first half of the year, Xianggang Technology’s revenue was 288 million yuan, a year-on-year increase of 42.63%, a loss of 08 million yuan, and net profit fell by 338.43% year-on-year.

According to public information, Jinsheng New Materials is mainly engaged in the research and development, production and sales of cosmetic plastic packaging containers. The main products include cream bottle series and lotion bottle series. Regarding the decline in net profit in the first half of this year, Jinsheng New Materials said that the main reason is the decline in gross profit margin, while the increase in employee wages, social security, depreciation and amortization has led to an increase in management costs.

Xianggang Technology is mainly engaged in the R&D, production and sales of color boxes, labels and other related packaging and printing products. It mainly provides a full range of packaging and printing services for companies in the fields of daily chemicals and food. business.

Xianggang Technology said that due to factors such as the sharp rise in raw material prices in the upstream of the packaging and printing industry chain, labor costs, and the cancellation of preferential social security policies during the reporting period compared with the same period last year, the gross profit margin of the company's packaging and printing business and packaging materials business declined. The level of net profit decreased compared with the same period of the previous year.

In addition, the financial report also shows that the operating cash flow of Jinsheng New Materials in the first half of this year was 10 million yuan, a year-on-year decrease of 40.44%. It is reported that the cash flow of Lihe Kechuang, a cosmetics plastics manufacturer, has plummeted, with a year-on-year decrease of 430.85%.

Not only cosmetic packaging materials, but the entire packaging and printing industry is facing the same situation.

For example, Yutong Technology, a leading printing company, recorded revenue of 6.05 billion yuan in the first half of this year, a year-on-year increase of 40.4%; net profit was 340 million yuan, a year-on-year increase of 2.6%; but deducted non-net profit was 260 million yuan, a year-on-year decrease of 8.5%. %. At the same time, the company's gross profit also fell by 19%, and operating cash flow fell by 64%.

It is worth mentioning that some packaging material manufacturers have also aligned the company's new business with cosmetics OEM. The financial report shows that Shanghai Jinting Cosmetics Co., Ltd., an OEM company under Xianggang Technology, achieved operating income of 20.4137 million yuan in the first half of this year, a year-on-year increase of 251.63%. However, Xianggang Technology also said, "The company's cosmetics OEM business is still in the initial stage of development, and the business scale has not yet fully covered the cost. During the reporting period, Jinting Cosmetics still lost 9.1462 million yuan, a year-on-year decrease of 29.42%. "And Jiaheng Jiahua Its cosmetics OEM business has accounted for more than 50% of the company's total revenue.

Raw materials are rising and rising, triggering a chain reaction

It is worth noting that the above-mentioned packaging material companies all pointed the "spearhead" of the decline in net profit in the first half of the year to the rise of raw materials.

Both Jiaheng Jiahua and Lihe Kechuang mentioned in their financial reports that the main raw materials used in the company's production are synthetic resins such as PE and PP, and their price is one of the important factors affecting the company's profitability. During the reporting period, global raw material and bulk commodity prices continued to rise, and the company was under certain pressure on the cost side. Fluctuations in raw material prices will directly affect the company's production costs, resulting in fluctuations in gross profit margins, which will have a certain impact on the company's operating performance.

As crude oil futures prices rose all the way in the first half of this year, the prices of downstream related chemical products also fluctuated accordingly. Taking PP as an example, the ex-factory price at the end of last year was about 8,200 yuan/ton, but it has risen to about 9,500 yuan/ton in March this year.

It is reported that PP is widely used in the packaging of conventional daily chemical products. "Except for some high-end cream products, almost most of the skin care products and toiletries use PP, which has a wide range of applications. At the same time, general plastic pump heads, vacuum bottles, etc. also use PP." A cosmetic bag The material dealer introduced it to Qingyan.

At the same time, in terms of paper, starting from January this year, after the bull market for upstream raw materials that lasted half a year, the prices of raw materials such as cardboard, corrugated paper, and white cardboard have risen again, especially white cardboard. Last June (about 5,000 yuan/ton) began to rise all the way, until March this year, white cardboard has risen to 10,200 yuan/ton. According to another public information, recently, large-scale paper companies such as Bohui Paper, Sun Paper, and Chenming Paper have issued price increase notices again, among which the price of white card and copper cardboard series products has increased by 200 yuan/ton.

Obviously, the continuous rise of raw materials has led to an increase in the cost of downstream packaging materials, resulting in a decrease in the profitability of many cosmetic packaging material manufacturers.

An industry insider told Qingyan that the increase in raw materials is only one aspect, and on the other hand, due to the lack of downstream consumption power, the demand for the factory's brand side is not high, and there is an oversupply state. Packaging material manufacturers generally experienced a decline in profits.

Another cosmetics packaging material manufacturer also expressed emotion in the circle of friends, "It seems that in the first half of this year, the increase in revenue and the decline in net profit and cash flow are common problems for packaging material manufacturers." Another packaging material supplier said, "In the past 20 years in China's cosmetics industry, brands and channels have been responsible for the first half; after the new regulations, the second half may be raw materials, OEM, ODM, OBM, etc. (responsible), and there may be no packaging... ..."