NISSIN FOODS GROUP

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Segment Results (for the Three Months Ended June 30, 2020)

The Nissin Foods Group aspires to create and develop market-leading brands in our chosen food product categories for markets around the world.

JAPAN

Nissin Food Products

NISSIN FOOD PRODUCTS achieved year-on-year growth in sales with a rise in sales of cup-type noodle products. In bag-type noodles, sales of the CHICHEKN RAMEN series and the OWAN DE TABERU series remained strong. However, the sales quantity temporally decreased because of the effect of a price revision in June 2019. Thus, sales decreased in bagtype noodles. On the other hand, sales increased in cup-type noodles, where the ASSARI OISHII CUP NOODLE series, which is characterized by a lighter flavor, and the CUP NOODLE BIG series remained strong in terms of sales. Meanwhile, profits decreased year on year, reflecting higher depreciation expenses associated with the launch of the Kansai Plant as well as an increase in raw materials prices and logistics costs.

Consequently, Revenue was ¥ 43,414 million (+0.6%) and operating profit was ¥ 4,668 million (-20.6%) of this reportable segment.

Myojo Foods

MYOJO FOODS achieved year-on-year growth in sales of cup-type products, reflecting strong sales of the MYOJO CHARUMERA and MYOJO CHUKAZANMAI series. Other contributors to the higher sales included the MYOJO UMADASHIYA series, which are open-price product. Meanwhile, profits decreased year on year, reflecting higher raw materials prices and logistics costs.

Consequently, Revenue was ¥ 8,391 million (+3.2%) and operating profit was ¥ 612 million (-18.5%) of this reportable segment.

Chilled and frozen foods

At NISSIN CHILLED FOODS, sales remained strong for the TSUKEMEN NO TATSUJIN series and the GYORETSUNO-DEKIRU-MISE-NO-RAMEN series. However, overall sales decreased year on year, reflecting weak demand for chilled noodles in the unseasonable weather. NISSIN FROZEN FOODS achieved sales growth, helped by NISSIN MOCHITTO NAMA PASTA, a mainstay product, the NISSIN SPA OH PREMIUM series, and NISSIN CHUKA SHANGHAI YAKISOBA OMORI, all of which grew stably in terms of sales.

Consequently, Revenue was ¥ 13,568 million (-0.6%) and operating profit was ¥ 723 million (+8.6%) of this reportable segment.

OVERSEAS

The Americas

The Americas are working to enhance the proposal of premium products aimed at creating new demand, enhancing the profitability of existing products. Sales increased in the segment, reflecting strong sales of NISSIN LAMEN, a core product in Brazil and CUP NOODLES. Successful sales promotions for premium products in the United States also contributed to the overall sales growth in the segment. Profits increased due to factors such as the effect of price revisions and sales increase of premium products.

Consequently, Revenue was ¥ 15,128 million (+15.5%) and operating profit was ¥ 1,396 million of this reportable segment (+1,707 million).

China

In China, the market for high value-added products is expanding in mainland China. The Group has taken steps to expand its geographical sales areas and strengthen its CUP NOODLES brand. In this environment, sales increased year on year thanks to strong sales of cup-type noodles, mainly in the CUP NOODLES brand. Profit increased year on year due to the increase in sales volume in China, and cost reductions associated with increase in volume.

Consequently, Revenue was ¥ 9,635 million (+4.4%) and operating profit was ¥ 839 million (+102.4%) of this reportable segment.

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