Business Reporting by Segment
Index
FY 3/2023 Financial Results by Segment
Revenue Increase Across All Three Segments & Significant Revenue and Profit Growth in Overseas Operations
Revenue increased across all three businesses, driven mainly by our U.S.-centered overseas business and bolstered by the impact of price revisions. Despite the pressure due to rising costs, our core operating profit increased overall due to a significant boost in profit from our overseas businesses.
| Revenue results | Core OP Results | |||||
|---|---|---|---|---|---|---|
| FY 3/2023 | YoY change | Core OP | YoY change | |||
| Amount | Ratio | Amount | Ratio | |||
| NISSIN FOOD PRODUCTS | 220.2 | +9.4 | +4.5% | 26.6 | -4.0 | -13.2% |
| MYOJO FOODS | 40.5 | +2.6 | +6.8% | 2.3 | -0.1 | -3.9% |
| Domestic Instant Noodle Business | 260.7 | +12.0 | +4.8% | 28.9 | -4.1 | -12.5% |
| Chilled/frozen foods and beverages | 86.8 | +6.0 | +7.4% | 3.9 | +0.7 | +20.0% |
| Confectionery | 74.1 | +5.0 | +7.3% | 2.8 | -0.3 | -10.1% |
| Domestic Non-Instant Noodles Business | 160.9 | +11.0 | +7.3% | 6.8 | +0.3 | +5.2% |
| Domestic Others | 4.7 | +2.5 | +115.5% | 1.1 | -0.7 | -38.6% |
| Domestic Business total | 426.3 | +25.5 | +6.4% | 36.8 | -4.5 | -10.9% |
| The Americas | 140.0 | +52.7 | +60.4% | 12.5 | +9.6 | +324.2% |
| China (incl. H.K.) | 66.1 | +10.7 | +19.2% | 7.8 | +1.7 | +27.5% |
| Asia | 19.4 | +4.7 | +31.5% | 4.2 | +0.1 | +2.2% |
| EMEA | 17.3 | +6.0 | +52.6% | 5.2 | +4.8 | +1,130.0% |
| Overseas Business total | 243.0 | +74.0 | +43.8% | 29.8 | +16.1 | +118.6% |
| Domestic and Overseas Businesses total | - | - | - | 66.5 | +11.6 | +21.2% |
| Other reconciliations | - | - | - | -0.2 | -0.2 | - |
| Group expenses | - | - | - | -6.1 | -0.8 | - |
| Existing Businesses | - | - | - | 60.2 | +10.6 | +21.5% |
| New Businesses | -4.9 | -2.0 | - | |||
| Consolidated | 669.2 | +99.5 | +17.5% | 55.3 | +8.6 | +18.5% |
Domestic Instant Noodles Business
The domestic instant noodles business saw demand remain steady. However, impacted by the rise in raw material costs, it saw an increase in revenue by 4.8% compared to the previous term and a decrease in profit by 12.5%.
NISSIN FOOD PRODUCTS
| Revenue | 220.2 Bil. Yen | +4.5% |
|---|---|---|
| Core Operating Profit | 26.6 Bil. Yen | -13.2% |
| Operating Profit | 26.8 Bil. Yen | -13.1% |
Both cup-type and bag-type noodle categories saw year-on-year growth in sales. In the cup-type noodle category, CUP NOODLE NEGI SHIO, launched in February 2023, significantly contributed to sales alongside the strong performance of the CUP NOODLE PRO series. For the bag-type noodle category, products like ZEROBYO CHICKEN RAMEN and NISSIN KORE ZETTAI UMAIYATSU♪ series, revamped in September 2022, have been performing well. In the cup rice category, the NISSIN CURRY MESHI series continues to maintain its popularity.
Despite an increase in sales, profits decreased year-on-year due to the surge in raw material costs, among other factors.
MYOJO FOODS
| Revenue | 40.5 Bil. Yen | +6.8% |
|---|---|---|
| Core Operating Profit | 2.3 Bil. Yen | -3.9% |
| Operating Profit | 2.4 Bil. Yen | -2.9% |
Under the theme of “improvement of noodles across the board,” we promoted product value enhancement from major brands to premium and affordable products to achieve year-on-year growth in sales. In cup-type noodles, MYOJO KOIZE! IPPEICHAN BIG contributed to sales, in addition to strong performance from MYOJO IPPEICHAN YOMISE NO YAKISOBA, which saw an increased amount of sauce blended into the noodles to boost its savory flavor and aroma. We also saw a strong performance from affordable products such as the DESSE series, newly launched in September 2022, and the MYOJO SHIGOKU NO IPPAI series, revamped in July 2022. In the bag-type noodle category, MYOJO CHARUMERA saw popular demand and expanded sales of a collaborative package featuring the popular character Chiikawa.
Despite an increase in sales, profits decreased year-on-year due to the surge in raw material costs, among other factors.
TOPICS
Developing a Product Lineup that Caters to a Broad Range of Consumer Needs
Amid inflation-induced food price hikes leading to a market trend towards lower-priced goods, NISSIN FOODS is seeing robust sales not only in the budget segment but also in our value-added product lines. Our flagship CUP NOODLES and DONBEI brands have achieved record-high sales for six and eight years in a row, respectively. Going forward, we will continue to develop our product lineup so that it addresses the diverse needs of our broad consumer base.
Domestic Non-Instant Noodles Business
The domestic non-instant noodles business saw a 7.3% increase in revenue and a 5.2% increase in profit year-on-year, significantly bolstered by NISSIN YORK and KOIKE-YA.
Chilled/Frozen Foods and Beverage Business
| Revenue | 86.8 Bil. Yen | +7.4% |
|---|---|---|
| Core Operating Profit | 3.9 Bil. Yen | +20.0% |
| Operating Profit | 3.9 Bil. Yen | +12.9% |
Chilled Foods Business
Sales of the NISSIN YAKIUDON and other chilled noodles were solid, in addition to increased sales of MEN NO TATSUJIN and SOUP NO TATSUJIN. However, revenue decreased year-on-year due to a sales decrease across the ramen segment as a result of changes in the market environment among other factors. Profit decreased due to the surge in energy and raw material costs.
Frozen Foods Business
Sales increased year-on-year due to the steady performance of the REITO NISSIN GOKURI series and the REITO NISSIN HONMEN series in the ramen category and the REITO NISSIN SPA OH PREMIUM series in the pasta category. Profit decreased year-on-year due to an increased sales-cost ratio.
Beverage Business
We saw strong performance in NISSIN YORK's PILKUL 400 series and TOKACHI DRINK YOGURT series. Additionally, the September 2022 release of PILKUL MIRACLE CARE, a product aimed at improving sleep quality and reducing fatigue, added to sales, leading to a year-on-year increase in revenue. Profit increased with a sales increase, offsetting a surge in energy and raw material costs.
Confectionery Business
| Revenue | 74.1 Bil. Yen | 7.3% |
|---|---|---|
| Core Operating Profit | 2.8 Bil. Yen | -10.1% |
| Operating Profit | 2.8 Bil. Yen | -15.0% |
In the confectionery business, revenue increased, primarily driven by the robust performance of
KOIKE-YA, although the surge in raw material costs led to a decline in profit.
For KOIKE-YA, not only did sales of high-value-added products trend favorably, but sales also expanded
around the flagship KOIKE-YA POTATO CHIPS series, among others. Despite
the rising cost of raw materials abroad, the incremental price revisions implemented domestically
contributed to an increase in profit. Meanwhile, at NISSIN CISCO, while confectionery sales remained
strong, the rise in raw material costs and sluggish cereal sales contributed to a decrease in both
revenue and profit. At BonChi, although the flagship products performed well, the increase in raw
material costs led to increased revenue but decreased profit.
TOPICS
Advancements through High-Value-Added Products
In the domestic non-instant noodle business, the growth of NISSIN YORK and KOIKE-YA supported the overall performance of our domestic business. Initiatives and future prospects for NISSIN YORK and KOIKE-YA, where we have succeeded in adding high-value products that address new social demands, are detailed on the pages below.
FEATURE: Breakthrough by NISSIN YORK and KOIKE-YA with High-Value-Added Products
Overseas Business
In our overseas business, the Americas drove overall performance, resulting in increased revenue and profits across all regions.
The Americas
| Revenue | 140.0 Bil. Yen | +60.4% |
|---|---|---|
| Core Operating Profit | 12.5 Bil. Yen | +324.2% |
| Operating Profit | 12.5 Bil. Yen | +316.7% |
In the Americas, price revisions were implemented in response to inflation and rising material costs as we diligently executed strategies in each country, resulting in increased revenue and profits. Efforts are underway to enhance and promote value-added products aimed at generating new demand, in addition to improving the profitability of existing products.
In the U.S., amid continued high demand for instant noodles, sales of value-added products with clear differentiation advantages have been doing well following price revisions, alongside the steady performance of existing base products. In Brazil, as the unequivocal market leader, we are focusing on cup-type noodles in addition to bag-type noodles as we strive to develop new markets. The synergy of aggressive sales and marketing initiatives contributed to solid sales for major products like NISSIN LÁMEN and CUP NOODLES, along with the sales of new product U.F.O. In Mexico, aggressive sales activities aimed at finding new customers, coupled with expanding demand, led to robust sales.
TOPICS
Positive Movement with Premium Products at the Forefront in the U.S.
In the U.S., amidst an instant noodle market where low-price competition prevails, we are focusing on transitioning towards premium products to differentiate ourselves from other companies. As demand for instant noodles accelerated and stabilized during the COVID-19 pandemic, our revenue has seen a double-digit increase.
Our initiatives and future prospects in the U.S. are detailed in the pages below.
China (incl. H.K.)
| Revenue | 66.1 Bil. Yen | +19.2% |
|---|---|---|
| Core Operating Profit | 7.8 Bil. Yen | +27.5% |
| Operating Profit | 8.4 Bil. Yen | +39.4% |
In China (incl. H.K.), despite being affected by the rise in material costs, an increase in both revenue and profit was achieved due to the effects of price revisions.
In mainland China, the effect of price revisions, along with expanded sales of high-value-added products and the bolstering of our Chinese cup noodle brand HE WEI DAO, have contributed to sales increases. In Hong Kong, the strong performance of high-value-added products and the expansion of non-instant noodle businesses such as confectionery, beverages, and frozen foods have contributed to expanding revenue opportunities through diversification across categories.
Asia
| Revenue | 19.4 Bil. Yen | +31.5% |
|---|---|---|
| Core Operating Profit | 4.2 Bil. Yen | +2.2% |
| Operating Profit | 4.0 Bil. Yen | +13.6% |
Sales increased across all regions. Despite being affected by the rise in material costs, an increase in profit was achieved throughout Asia due to the effects of price revisions.
EMEA
| Revenue | 17.3 Bil. Yen | +52.6% |
|---|---|---|
| Core Operating Profit | 5.2 Bil. Yen | +1,130.0% |
| Operating Profit | 5.1 Bil. Yen | +864.2% |
In the rapidly growing instant noodle market, revenue has soared to about 1.5 times year on year, and the inclusion of Premier Foods as an equity-method affiliate has led to a substantial increase in profits.