On November 16, H&H International Holdings Co., Ltd. (hereinafter referred to as "H&H Group"), a leading company in the high-end nutrition and health industry, announced its third quarter 2021 performance report, stating that revenue during the period was 8.096 billion yuan, an increase of 4.2%. The Chinese market accounted for 81% of the group's total revenue, making it the largest contributor to the group's revenue. Among the group's three major business segments, the pet nutrition and care business has grown rapidly and has become its new growth pole.
Based on the keen insight into the continuous upgrading of the consumption structure, in recent years, Hianhe Group has made layout and adjustments in the three major business sectors of infants, adults, and pets, using differentiated competitive advantages to drive the steady improvement of core indicators.
In the infant nutrition and care products business unit, the company's milk powder business sales in the Chinese market achieved a 4.5% growth; the adult nutrition and care products business unit sales increased significantly globally, reaching 5.8%, of which the Chinese market increased by 8.7%; the pet nutrition and care products business unit revenue reached 345 million yuan, Solid Gold grew by 23.1% year-on-year, and the Chinese market business accounted for 41.1% of this unit.
The group’s CEO An Yuting said that the multi-brand, multi-category and multi-channel strategy will promote the group’s long-term sustainable growth.
The dietary nutrition brand product line has expanded to include snacks and children's nutrition products
After the outbreak, the Chinese market has strong demand for healthy foods, and many health and nutrition brands have experienced significant growth.
Benefiting from this craze, the group's dietary nutrition and health brand Swisse continues to lead the Chinese nutritional supplement market, with strong online and offline omni-channel network growth, achieving an increase of 8.7%. Among them, major single products such as calcium tablets, men's vitamin tablets, liver protection tablets, collagen hydrating tablets, grape seeds, and whey protein powder have sold over 100 million yuan in the Chinese market.
As of September 30, 2021, Swisse continues to hold the top spot in the online vitamin, herbal and mineral supplement market in mainland China, with a market share of 5.8%. At the same time, Swisse’s offline business has expanded to 36,000 sales points in the first three quarters.
It is reported that the brand has currently launched a number of products that have passed China's health food registration ("Blue Hat"). This year, it has also launched a new healthy snack brand and a children's nutritional health product brand.
The company stated that in the future, it will continue to strengthen brand exposure, introduce "blue hat" single products and localized innovative products, rely on the newly launched high-end cross-border nutritional and health care product duty-free project in Hainan Free Trade Port, and the "spillover effect" of the China International Import Expo, actively embrace new opportunities under the dual-circulation supply chain, and expand its significant advantages in the omni-channel network.
China's pet consumption is strong, and another overseas acquisition was completed this year.
China's pet market is currently on the rise. The number of pet owners has skyrocketed, driving the rapid growth of related industries including pet food, supplies, pet medical care, etc.
The pet nutrition and care products business of H&H Group is also booming, with its Solid Gold growing by 23.1% year-on-year. China's revenue contribution has increased significantly, accounting for 41.1% of the group's pet business unit, with sales reaching 142 million yuan.
In addition, with the increasing demand for high-end pet nutrition and consumer spending, the brand performed well both online and offline. Solid Gold recorded double-digit growth of 16.4% in the US market.
In April this year, Solid Gold officially launched the Chinese market and joined hands with brand spokesperson Liu Yuxin to quickly enter the consumer circle of Generation Z.
At the same time, it has also cooperated with South China Agricultural University and other industry organizations, authoritative experts and scholars to carry out scientific research cooperation, and established the Solid Gold Pet Nutrition Research Center to consolidate the transformation of product scientific research results and plan to create a new benchmark for the high-end pet nutrition industry.
In addition, in order to expand market share, the group completed the acquisition of Zesty Paws, the leading online high-end pet supplement brand in the United States, in October this year. The brand ranks first in online pet nutritional supplements in the United States, and its market performance is active. It is expected to further increase the total contribution of the third business to the group's revenue.
Hianhe Group stated that with the continuous focus on business, R&D, market, and investment, as well as the further release of China's "dual circulation" policy to promote the potential of the consumer market, it is expected to achieve the goal of sustained revenue growth throughout 2021.