Nissin Foods net profit drops 39pc to $201m

Japanese instant food giant Nissin Foods (1475) reported a 2024 net profit of HK$201 million, a 39 percent decline from the year prior, mainly due to HK$135.9 million in non-cash charges from assets impairment losses.

The company revealed the sizable impact of northbound trips, saying its food products' performance was mediocre as consumers favored eating out and outbound travel, especially weekend excursions to the mainland.

The company declared a final dividend of 9.63 HK cents and a special dividend of 6.19 HK cents.

Revenue edged down by 0.56 percent year-on-year to HK$3.81 billion, due to the negative effects of the foreign exchange rate.

Its gross profit increased by 0.7 percent to HK$1.31 billion while gross profit margin rose 0.4 percentage points to 34.4 percent in 2024, mainly due to the optimization of fixed costs following the increased sales volume of instant noodles.

STAFF REPORTER