Nissin Food Products
Sales of NISSIN FOOD PRODUCTS Co., Ltd. increased year on year with a rise in sales of cup-type noodle and bagtype noodle products. In cup-type noodles, sales of the CUP NOODLE brand significantly increased with the launch of Nissin Food 60th Anniversary Cup Noodle to commemorate the 60th anniversary of NISSIN FOOD PRODUCTS Co., Ltd. and the release of the ASSARI SUKUNAME CUP NOODLE series characterized by a lighter taste. Sales of the NISSIN-NO-DONBEI series and the NISSIN YAKISOBA U.F.O. series also remained strong partly due to the effect of launching new products. In bag-type noodles, CHICKEN RAMEN AKUMA NO KIMU-RA, which benefited from a powerful TV commercial and excellent palatability became a popular topic of conversation on social media and online news sites, contributed to sales of the CHICKEN RAMEN brand, which celebrated the 60th anniversary of its release, and sales of the OWAN DE TABERU series, which was released in September 2017, remained strong. As a result, these products contributed to the company’s sales.
Consequently, Revenue was ¥ 43,142 million (+0.6%) and operating profit was ¥ 5,875 million (+4.3%) in this reportable segment.
Looking at sales of MYOJO FOODS Co., Ltd., sales of the MYOJO IPPEICHAN YOMISE NO YAKISOBA series, a core cup-type noodles product, remained solid, and sales of the MYOJO UMADASHIYA series also grew. As a result, the company registered an increase in sales. Sales of bag-type noodles also increased year on year thanks to firm sales of the MYOJO CHUKAZANMAI series amid the sluggish market. Consequently, Revenue was ¥ 8,129 million (+10.3%) and operating profit was ¥ 752 million (+19.9%) in this reportable segment.
Chilled and frozen foods
At NISSIN CHILLED FOODS Co., Ltd., sales of the FRY PAN HITOTSU DE series whose easy preparation has proven popular rose, although the market conditions for chilled noodles were lackluster. Meanwhile, sales of fried noodle products recovered beyond the year-ago level, mainly helped by the FUTOMEN YAKISOBA series, a core product. As a result, the company posted a year-on-year gain in sales. However, overall profit declined mainly due to rises in raw material and logistics costs.
NISSIN FROZEN FOODS Co., Ltd. saw steady sales, mainly in products for commercial use. Sales of Chinese-type noodles without soup such as REITO NISSIN CHUKA SHIRUNASHI TAN TAN MEN increased, and sales of NISSIN MOCHITTO NAMA PASTA, NISSIN SPA OH BIG and NISSIN SPA OH PREMIUM continued to be strong in pasta products with precooked ingredients. As a result, the company registered a year-on-year increase in sales. Consequently, Revenue was ¥ 13,654 million (+2.3%) and operating profit was ¥ 665 million (+4.1%) in this reportable segment.
The Americas is working to strengthen the proposal of value-added products to create new demand and enhance cost competitiveness, in addition to empowering existing products.
Sales declined in the segment, affected by the effect of foreign currency exchange and a fall in the unit price of sales because of the severe sales environment in the United States, although sales of NISSIN LAMEN, a core product in Brazil, remained firm and the launch of new flavors in CUP NOODLES led to higher sales. Profit declined in the Americas segment given the deteriorated external environment in the United States, such as the rising cost of principal raw materials and increases in logistics and personnel costs.
Consequently, Revenue was ¥ 13,099 million (-1.9%) and operating profit was ¥ 311 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, however, given rising personnel costs and raw material prices in China.
Consequently, Revenue was ¥ 9,230 million (+6.0%) and operating profit was ¥ 414 million (-37.6%) in this reportable segment.