Nissin Foods Announces 2023 Q1 Financial Results
Net profit up 22.3%
Sales outperforms pre-pandemic levels
HONG KONG, May 10, 2023 - (ACN Newswire) - Nissin Foods Company Limited ("Nissin Foods" or the "Company", together with its subsidiaries, the "Group"; Stock code: 1475) today announced its unaudited first quarter financial results for the three months ended 31 March 2023 ("the Reporting Period").
The Group's revenue was HK$1,024.4 million (2022: HK$1,061.8 million). Gross profit grew 8.8% YoY to HK$362.1 million (2022: HK$332.8 million). Gross profit margin increased significantly to 35.3% (2022: 31.3%), mainly attributable to the implementation of price adjustments and easing of raw material costs. Profit attributable to owners of the Company grew 22.3% to HK$110.5 million (2022: HK$90.3 million).
Revenue from the Hong Kong operations was HK$348.4 million (2022: HK$357.9 million). However, its sales outperformed the pre-pandemic level in 2019, indicating that the growth momentum continues upon resumption of normalcy in the region. As for the Mainland China operations, revenue of HK$676.0 million (in local currency: +3.3%) was recorded for the Reporting Period (2022: HK$703.9 million) due to the depreciation of the Renminbi against the Hong Kong dollar.
Mr Kiyotaka ANDO, Executive Director, Chairman and Chief Executive Officer of Nissin Foods, said, "We are delighted to see that our business has recorded double-digit profit growth compared with pre-pandemic levels. This is a testament to the effectiveness of our premiumisation strategy, which has enabled sustaining growth when the market has returned to normal conditions. The consumer market remains competitive and challenging, and thus our outlook remains cautiously optimistic. Moving forward, we will continue to leverage our diversified product portfolio and develop various marketing strategies to boost sales performance, thereby enhancing our overall competitive strengths and creating long-term value for shareholders."
About Nissin Foods Company Limited
Nissin Foods Company Limited (the "Group"; Stock code: 1475) is a renowned food company in Hong Kong and Mainland China with a diversified portfolio of well-known and highly popular brands and the largest instant noodle company in Hong Kong. The Group officially established its presence in Hong Kong in 1984. The Group primarily manufactures and sells instant noodles, frozen foods and other food products under its two core corporate brands, namely "NISSIN" and "DOLL" together with a diversified portfolio of iconic household premium food brands. The Group's five flagship product brands, namely "Cup Noodles", "Demae Iccho", "Doll Instant Noodle", "Doll Dim Sum" and "Fuku" are also among the most popular choices in their respective food product categories in Hong Kong. In the Mainland China market, the Group has introduced technology innovation through the "ECO Cup" concept and primarily focuses its sales efforts in first-and second-tier cities.
Nissin Foods is a constituent of eight Hang Seng Indexes, namely: Hang Seng Composite Index, Hang Seng Consumer Goods & Services Index, Hang Seng Stock Connect Hong Kong Index, Hang Seng Stock Connect Hong Kong MidCap & SmallCap Index, Hang Seng Stock Connect Hong Kong SmallCap Index, Hang Seng SCHK Mainland China Companies Index, Hang Seng SCHK ex-AH Companies Index, and Hang Seng Small Cap (Investable) Index. Nissin Foods is eligible for trading under Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect. For more information, please visit www.nissingroup.com.hk.
Source: Nissin Foods Co Ltd
Sectors: Food & Beverage
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