Analysis on profit margins and pricing challenges for Gold Dragon Fish and Haitan brands in China.
economy5 h ago
coda.news AI summary
- Haitian (Haitan) has about 40% gross margin and 20% net margin.
- Raw material costs for edible oil brands account for about 88-90% of total costs, making costs volatile with commodity swings.
- Soy sauce products (Haitian) are less variable due to soy's share of costs being roughly 20%; the cost impact of soy price changes is moderated.
- Both brands are everyday cooking essentials in China and are price-sensitive, limiting ability to raise prices.
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