Nissin Foods Posts 11.6% Profit Rise in First Half, Skips Interim Dividend
AM730 · 2 SOURCESabout 2 hours ago2 MIN
Summary
Nissin Foods (stock code: 1475) announced its interim results for the six months ending June 30, 2024. The company reported a net profit of HK$175 million, representing an 11.6% increase year-on-year, translating to earnings per share of HK$0.1679. No interim dividend will be distributed .
Key Points
- Revenue increased 2.8% year-on-year to HK$2.071 billion, driven by sustained growth in the core instant noodles segment and broader store coverage in mainland China .
- Gross profit rose 8% to HK$731 million, with gross margin expanding 1.7 percentage points to 35.3%, attributed to the expansion of high-margin instant noodles business and effective raw material procurement strategies .
- Hong Kong and other regions revenue remained stable at HK$794 million (up 0.2%), accounting for 38.3% of total revenue, though segment profit declined 16% to HK$57 million due to strategic promotional investments in frozen food products .
- Mainland China business revenue grew 4.5% to HK$1.278 billion, representing 61.7% of total revenue, with segment profit surging 20.1% to HK$208 million, driven by increased instant noodles sales volume and optimized product mix .
- Adjusted EBITDA increased 9.1% to HK$331 million, with the adjusted EBITDA margin rising to 16%, reflecting improved operational efficiency across the group's operations .
Why It Matters
Nissin Foods' strong performance demonstrates the resilience of Hong Kong's food manufacturing sector amid economic uncertainty, with the company's mainland China operations serving as the primary growth engine while maintaining market share in its home market through innovative marketing collaborations with popular anime franchises .
Nissin Foods' strong performance demonstrates the resilience of Hong Kong's food manufacturing sector amid economic uncertainty, with the company's mainland China operations serving as the primary growth engine while maintaining market share in its home market through innovative marketing collaborations with popular anime franchises .