HONG KONG, Nov 7, 2019 - (ACN Newswire) - - Nissin Foods Company Limited (the "Company", and together with its subsidiaries, the "Group"; Stock code: 1475) today announced its 2019 third quarter financial information for the nine months ended 30 September 2019 ("the Reporting Period").
Revenue of the Group amounted to HK$2,348.1 million, representing a year-on-year (YoY) increase of 3.2% from HK$2,274.8 million. Gross profit increased by 10.7% YoY to HK$770.1 million (2018: HK$695.5 million), with gross profit margin rising to 32.8% (2018: 30.6%), mainly attributable to the stable raw material costs and better control of fixed costs. Profit attributable to owners of the Company was HK$211.2 million, representing a 27.1% jump YoY from HK$166.2 million.
For the Hong Kong operations, revenue declined by a slight 2.2% YoY to HK$960.2 million (2018: HK$981.6 million) during the Reporting Period, mainly affected by the change in product portfolio of the MC Marketing & Sales (Hong Kong) Limited distribution business, yet partly offset by the subsequent growth in sales of instant noodles and other products. As for the PRC operations, revenue recorded a significant increase by 7.3% YoY (in local currency: 12.5%) from HK$1,293.2 million to HK$1,388.0 million, despite the effects of foreign exchange depreciation of the Renminbi compared to the Hong Kong Dollar this year.
Looking ahead, the Group remains cautiously optimistic about the Hong Kong operation and has actively paved the way for potentially high growth of its business in the PRC market over the long term. In particular, the investment announced in July earmarking about RMB180 million for building a new material production plant in Zhuhai, the PRC, is expected to facilitate the Group's business growth by reducing production costs and benefitting from greater synergies with the current production facilities. Besides, with the target completion of the new Bar Ramen production line upgrade at the Hong Kong factory in this year, the Group would possess a even stronger capacity enabling this authentic product to enter the burgeoning PRC market. Through these efforts, the Group can further enlarge its market share in the region, deliver considerable growth, and, ultimately, bring sustainable returns to shareholders.
For details, please refer to the announcement:
About Nissin Foods Company Limited
Nissin Foods Company Limited (The "Group"; Stock code: 1475) is a renowned food company in Hong Kong and the PRC 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 PRC market, the Group has introduced technology innovation through the "ECO Cup" concept into the market and primarily focuses its sales efforts in first- and second-tier cities located in the eastern and southern parts of the PRC. For more information, please visit www.nissingroup.com.hk.
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