Nissin Foods posts 11.3pc net profit growth in Q1

Japanese instant food giant Nissin Foods's (1475) saw its net profit rose 11.3 percent to HK$122.4 million in the first quarter, with no dividend being declared during the period.

Its adjusted earnings before interest, taxes, depreciation, and amortization increased by 3.7 percent to HK$209 million and revenue grew 4.1 percent to HK$1.12 billion.

Revenue from Hong Kong and other regions operations increased by 3.1 percent due to the stable performance of the noodles business, particularly its core brands of Cup Noodles and Demae Iccho. 

Revenue from the mainland China operations increased by 4.6 percent, or 0.6 percent in local currency, mainly attributable to the sales expansion in the inland areas and the appreciation of yuan to Hong Kong Dollars. 

The food maker’s gross profit rose 6.9 percent to HK$402.1 million, driven by the continued implementation of cost efficiency initiatives. The gross profit margin increased 0.9 percentage points to 36 percent, mainly attributable to the increased sales volume of the core brands to absorb cost pressure.

 

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