Nissin Food Products
NISSIN FOOD PRODUCTS Co., Ltd. saw a rise in sales year on year, reflecting increased sales of cup-type noodles and bag-type noodle products. In cup-type noodles, sales of the CUP NOODLE brand increased with the launch of NISSIN FOOD 60th ANNIVERSARY CUP NOODLE to commemorate the 60th anniversary of NISSIN FOOD PRODUCTS Co., Ltd. and CUP NOODLE MEMORIAL PACKAGE FEATURING NAOMI OSAKA, among other products. Sales of the NISSIN-NO-DONBEI series and the NISSIN YAKISOBA U.F.O. series also remained strong partly due to the launch of new products. In bag-type noodles, sales of CHICKEN RAMEN, which celebrated the 60th anniversary of its release, increased. In addition, the release of CHICKEN RAMEN AKUMA NO KIMU-RA, a product that benefited from a strong TV commercial and its excellent palatability was popular on social media and online news sites, contributed to sales. The OWAN DE TABERU series, which was released in September 2017, also performed well and contributed to sales.
In terms of profitability, profits benefited from an increase in sales and the efficient control of expenses, although these were more than offset by an increase in depreciation costs attributable to the operation of a new factory and a surge in raw material and logistics costs. As a result, profits declined year on year.
Consequently, Revenue was ¥145,489 million (+0.6%) and operating profit was ¥21,766 million (-3.6%) in this reportable segment.
Sales of MYOJO FOODS Co., Ltd. increased year on year due to growth in sales of cup-type noodles.
Sales of bag-type noodles fell slightly below the year-ago level, despite the steady performance of the MYOJO CHUKAZANMAI series.
Growth in sales of the MYOJO CHUKAZANMAI series and the MYOJO UMADASHIYA series contributed to sales of cup-type noodles, in addition to solid sales of the MYOJO IPPEICHAN YOMISE NO YAKISOBA series, a core cup-type noodles product.
Operating profit increased year on year thanks to the effect of higher sales, despite increasing expenses such as rising raw material prices and logistics expenses.
Consequently, Revenue was ¥24,857 million (+7.1%) and operating profit was ¥2,120 million (+19.8%) in this reportable segment.
Chilled and frozen foods
Looking at chilled foods in the chilled and frozen food segment, although market conditions for chilled noodles were sluggish, sales increased for the FRY PAN HITOTSUDE series whose easy preparation boasts a favorable rating and the NISSIN-NO-FUTOMEN YAKISOBA series, a core product. The NISSIN-NO-ICHININMAE (for one person only) series, which addresses the diversification of eating styles, also contributed. As a result, the company posted a year-on-year increase in both sales and profit. Meanwhile, frozen food saw steady sales, mainly in consumer products. Sales of Chinese-type noodles without soup such as REITO NISSIN CHUKA SHIRUNASHI TAN TAN MEN OMORI increased, and sales of Yakisoba such as NISSIN CHUKA SHANGHAI YAKISOBA OMORI also grew. In addition, NISSIN SPA OH PREMIUM continued to be strong in pasta products with precooked ingredients. However, profit declined slightly year on year, mainly reflecting an increase in raw material costs and personnel costs. Consequently, Revenue was ¥42,048 million (+2.5%) and operating profit was ¥1,676 million (-3.2%) in this reportable segment.
The Americas are working to strengthen the proposal of value-added products to create new demand and profitability by enhancing price competitiveness, in addition to empowering existing products.
Sales of NISSIN LAMEN, a core product in Brazil, continued to remain firm, and sales of CUP NOODLES also increased steadily. In the United States, we improved profitability by expanding sales of value-added products and implementing price revisions. As a result, revenue increased year on year.
Profit declined in the Americas segment due to the deteriorated external environment, such as the rising cost of principal raw materials and personnel expenses, and the persistently high cost of logistics.
Consequently, Revenue was ¥46,025 million (+0.9%) and operating loss was ¥124 million in this reportable segment.
In China, the instant noodles market has bottomed out in mainland China, and the market for high-end products is expanding. 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 declined year on year due to an increase in depreciation, IPO related personnel costs, and a gain on sales of property in the same period of the previous fiscal year.
Consequently, Revenue was ¥30,325 million (+4.2%) and operating profit was ¥2,404 million (-12.4%) in this reportable segment.