Nissin parent in China windfall

Nissin Foods (1475) said its controlling shareholder's China segment posted a 76.1 percent year-on-year surge in operating profit to 1.89 billion yen (HK$110 million) in the second quarter of this year.

The Japanese parent's net sales rose 27.9 percent to 16.04 billion yen in the previous quarter in China from a year ago.

Core operating profit was 1.53 billion yen over the same period, up 38.4 percent year on year.

The group has taken steps to expand its geographical sales areas and strengthen its flagship brand Cup Noodles as the market for high-value-added products is expanding in mainland China, it said.

The rise in operating profit was mainly attributed to price hikes and increased sales, which offset the surge in raw material costs, it said. Furthermore, the appreciation of the local currency against the yen also had more positive impacts on revenue and profit, it added.

Shares of Nissin rose 1.23 percent to close at HK$5.74 in Hong Kong yesterday.