Nissin Foods Acquires Korean Snack Manufacturer Gaemi Food
HONG KONG, June 3, 2024 – (ACN Newswire) – Nissin Foods Company Limited (“Nissin Foods”, together with its subsidiaries, the “Group”; Stock code: 1475) is pleased to announce that the Group, as the purchaser, and the Vendor entered into the Share Purchase Agreement (the “Acquisition”). This agreement relates to the Acquisition of 100% equity interest in Gaemi Food, a manufacturer of crispy roll snacks, which is a top national brand in the domestic crispy roll market in the Republic of Korea (“Korea”).
The consideration for the Acquisition is KRW 48,000 million (equivalent to approximately HK$271.7 million). Upon completion of the Acquisition, Gaemi Food will become a wholly-owned subsidiary of the Group engaged in the business of baked grain crispy rolls in the Korean and overseas markets. The Korean confectionery brand, “Kemy”, will be added to the Group’s portfolio, further enriching its non-noodle business.
Gaemi Food’s revenue was approximately KRW 20,150 million (approximately HK$121.6 million) for the year ended 31 December 2023, being a top national brand in the domestic crispy roll market in Korea. Gaemi Food has a national brand portfolio that includes its flagship “Baked Crispy Roll” product line and other product lines targeting at the high-value market of kids and toddlers’ snacks. Gaemi Food also supplies private brand and original design manufacturer products to many customers. The snack bars market is expected to experience robust growth in the next five years, not only in Korea but also in overseas markets such as China and Southeast Asia. This growth is driven by the continuous increase in consumer demand for convenient food products. The Group believes that this trend will continue and that there will be ample opportunities for expansion of the baked grain crispy rolls market.
The addition of the Korean snack manufacturer Gaemi Food to the Group would provide greater flexibility to deploy the Group’s distribution capabilities in China and Southeast Asia to respond to the increasing market demand and the changing business environment. The addition of the Korean confectionery brand, “Kemy”, to the Group’s non-noodle business portfolio would expand the business by further deepening its understanding of the Korean market with respect and leveraging the sales, logistics and related networks in the Korean market.
Mr. Kiyotaka ANDO, Executive Director, Chairman and Chief Executive Officer of Nissin Foods, said, “The addition of Gaemi Food represents a strategic milestone for Nissin Foods in developing our business in the Korean and overseas markets. While leveraging Nissin Foods’ core competencies in marketing and food technology, the Group is developing a non-noodle business that can create synergies with the instant noodle business. Most importantly, expanding into overseas markets not only diversifies our revenue sources, but also deepens our understanding of local cultures and consumer behaviours. This knowledge allows us to build stronger relationships with local consumers, enabling us to identify and pursue additional opportunities. Going forward, the Group will continue enhancing our market insights, ultimately boosting the Group’s market share and overall profitability.”
For more information, please refer to the Announcement on the Hong Kong Stock Exchange website at: https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0603/2024060301475.pdf
Nissin Foods Company Limited acquires Korean snack manufacturer Gaemi Food Co. Ltd. (From left to right) Mr. Shinji TATSUTANI, Executive Director and Chief Financial Officer of Nissin Foods; Mr. Kiyotaka ANDO, Executive Director, Chairman and Chief Executive Officer of Nissin Foods; Mr. Brian Hyunjin YUK, Chief Executive Officer of the Vendor and Gaemi Food; and Mr. Gyeonghoon PARK (Chief Strategic Officer of the Vendor and Gaemi Food, attended the signing ceremony of the Share Purchase Agreement today.
About Nissin Foods Company Limited
Nissin Foods Company Limited (“Nissin Foods”, together with its subsidiaries, the “Group”; Stock code: 1475) is a renowned food company in Hong Kong and Mainland China, with a diversified portfolio of well-known and highly popular brands, primarily focusing on the premium instant noodle segment. The Group officially established its presence in Hong Kong in 1984 and is the largest instant noodle company in Hong Kong. The Group primarily manufactures and sells instant noodles, high-quality frozen food products, including frozen dim sum and frozen noodles, and also sells and distributes other food and beverage products, including retort pouches, snacks, mineral water, sauce and vegetable products under its two core corporate brands, namely “NISSIN” and “DOLL” together with a diversified portfolio of iconic household premium 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 Mainland China market, the Group has introduced technology innovation through the “ECO Cup” concept and primarily focuses its sales efforts in first-and second-tier cities. In addition, Nissin Foods operated business in other Asian regions including Vietnam, Taiwan and Korea markets.
Nissin Foods is a constituent of five Hang Seng Indexes, namely: Hang Seng Composite Index, Hang Seng Composite SmallCap Index, Hang Seng Composite Industry Index – Consumer Staples, Hang Seng SCHK Consumption Index and Hang Seng SCHK Consumer Staples Index. Nissin Foods is eligible for trading under Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect. For more information, please visit www.nissingroup.com.hk.
Topic: Press release summary
Nissin Foods (Hong Kong) Charity Fund Continues Supporting Talents in Food and Nutritional Sciences
HONG KONG, Jan 12, 2024 – (ACN Newswire) – Nissin Foods (Hong Kong) Charity Fund (“Charity Fund”) has successfully held the 2023-2024 Nissin Foods Scholarship Presentation Ceremony today, together with The Chinese University of Hong Kong (“CUHK”), to award scholarships covering full tuition fees for a total of ten awardees for the 2023-2024 academic year.
Established by the Charity Fund and CUHK in 2023, the scholarship aims to encourage undergraduate and postgraduate students of CUHK’s Food and Nutritional Sciences (Hons) programme to pursue academic excellence. The three new awardees are: LAM Tsz Hang and SHUM Wai Hang from the Bachelor’s degree programme, and ZHOU Dandan from the PhD programme.
Apart from extending their support to new awardees, the Chairty Fund also made it a renewable scholarship which intends to support the students throughout their study period, so that the students could focus on their studies without worrying about their financial burden. The seven renewed awardees are CHAN Hoi Yi, HSU Po Ling, KWAN Ka Yi, LAM Shuk Fan, WONG Wai Yee from the Bachelor’s degree programme, and KEI Nelson, LIN Yuhong from the PhD programme.
Mr. Kiyotaka ANDO, Chairman of Nissin Foods (Hong Kong) Charity Fund, said, “As a leading food manufacturer in Hong Kong and worldwide, Nissin Foods is committed to discovering the possibilities of food and creating good tastes. We also believe that people working in the food industry must have the heart to serve society. That belief motivates us to establish the scholarship with CUHK to nurture outstanding and caring food professionals and even future industry leaders, so as to contribute to the development of the food industry in Hong Kong.”
Professor Anthony CHAN, Pro-Vice-Chancellor and Vice-President of CUHK, expressed his gratitude for the generosity of the Charity Fund, said, “The spirit of the founder of Nissin Foods, Mr Momofuku Ando, of being creative, staying curious and pushing boundaries in order to make a difference in our everyday lives, has inspired a lot of us. The determination to create foods to serve society remains at the heart of the operation in Nissin Foods; and their dedication to continue to nurture the next generation through supporting education in food science is truly admirable.”
At the ceremony, Mr. LAM Tsz Hang, on behalf of all the scholarship recipients, thanked the Charity Fund and CUHK for setting up the scholarship scheme and presented a letter of appreciation to the representative of the Charity Fund. He said, “As emphasized in one of the Nissin Foods Rules, ‘Strive for new experiences and wisdom. The future is bright for those who constantly challenge themselves.’ Your trust in our abilities inspires us to push beyond our limits and reach greater heights.”
Mr. Kiyotaka ANDO, Chairman of Nissin Foods (Hong Kong) Charity Fund (middle right), and Professor Anthony CHAN, Pro-Vice-Chancellor and Vice-President of CUHK (middle left), attended the 2023-2024 Nissin Foods Scholarship Presentation Ceremony today. The seven renewed awardees are: (front, from left to right) KWAN Ka Yi, HSU Po Ling, CHAN Hoi Yi, LAM Shuk Fan, WONG Wai Yee from the Bachelor programme, and KEI Nelson, LIN Yuhong from the PhD programme. The three new awardees this year are (back, from left to right) LAM Tsz Hang and SHUM Wai Hang from the Bachelor programme, and ZHOU Dandan from the PhD programme.
About Nissin Foods (Hong Kong) Charity Fund
The Nissin Foods (Hong Kong) Charity Fund (“Charity Fund”) was set up in September 2020 by way of a trust deed by Nissin Foods Company Limited (Stock code: 1475). The objectives of the Charity Fund are: a) to advance education, teaching, learning, arts, science and academic research; b) to make provision for people in need; and c) to carry out works of a charitable nature that are beneficial to the Hong Kong community.
Topic: Press release summary
Nissin Foods Announces 2023 Q3 Financial Results
Nissin Foods Company Limited (“Nissin Foods” or the “Company”, together with its subsidiaries, the “Group”; Stock code: 1475) today announced its unaudited third quarter financial results for the nine months ended 30 September 2023 (the “Reporting Period”).
The Group recorded revenue of HK$2,956.0 million for the Reporting Period. Gross profit increased by 2.8% to HK$1,005.8 million, and gross profit margin increased by 2.6 percentage points to 34.0% from 31.4% (restated) for the corresponding period of 2022. The increase in gross profit margin was mainly attributable to the price adjustments implemented last year and the easing of raw material costs during the Reporting Period. Profit attributable to owners of the Company for the Reporting Period increased by 16.1% to HK$270.4 million, compared with HK$233.0 million (restated) for the corresponding period of 2022.
Revenue from Hong Kong and other Asian operations was HK$1,142.1 million. As for the Mainland China operation, due to the depreciation of the Renminbi against the Hong Kong dollar, revenue of HK$1,813.9 million (in local currency: -0.2%) was recorded for the Reporting Period.
Mr Kiyotaka ANDO, Executive Director, Chairman and Chief Executive Officer of Nissin Foods, said, “We are pleased to have achieved double-digit profit growth amidst the challenging business landscape. During the Reporting Period, the Group continued to implement its strategy of cost control and price adjustment, with the aim of maintaining stable business performance. In view of the uncertain macro environment and economy, we anticipate that the consumer market will remain intense, and therefore we remain cautiously optimistic about the future outlook. Nissin Foods will continue to strengthen its overall competitiveness through a well-diversified product portfolio and premiumisation strategy, while increasing brand recognition in the regions in which it operates, in order to create long-term value for our customers and shareholders.”
About Nissin Foods Company Limited
Nissin Foods Company Limited (“Nissin Foods”, together with its subsidiaries, the “Group”; Stock code: 1475) is a renowned food company in Hong Kong and Mainland China with a diversified portfolio of well-known and highly popular brands, primarily focusing on the premium instant noodle segment. The Group officially established its presence in Hong Kong in 1984 and is the largest instant noodle company in Hong Kong. The Group primarily manufactures and sells instant noodles, high-quality frozen food products, including frozen dim sum and frozen noodles, and also sells and distributes other food and beverage products, including retort pouches, snacks, mineral water, sauce and vegetable products under its two core corporate brands, namely “NISSIN” and “DOLL” together with a diversified portfolio of iconic household premium 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 Mainland China market, the Group has introduced technology innovation through the “ECO Cup” concept and primarily focuses its sales efforts in first-and second-tier cities.
Nissin Foods is a constituent of five Hang Seng Indexes, namely: Hang Seng Composite Index, Hang Seng Composite SmallCap Index, Hang Seng Composite Industry Index – Consumer Staples, Hang Seng SCHK Consumption Index and Hang Seng SCHK Consumer Staples Index. Nissin Foods is eligible for trading under Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect. For more information, please visit www.nissingroup.com.hk.
Topic: Press release summary
Nissin Foods Announces 2023 Interim Results, Net Profit Increases by 6.4% to HK$171.7 Million
Nissin Foods Company Limited (“Nissin Foods” or the “Company”, together with its subsidiaries, the “Group”; Stock code: 1475) has announced its unaudited interim results for the six months ended 30 June 2023 (“the reporting period”).
The Group recorded revenue of HK$1,929.3 million for the reporting period. Gross profit grew by 1.9% to HK$658.3 million, boosting gross profit margin by 2.7 percentage points to 34.1% in 2023 from 31.4% (restated) in 2022. The increase in gross profit margin was mainly attributable to the price adjustments implemented in both Hong Kong and Mainland China in 2022 to offset the surge in manufacturing costs, as well as the easing of the key raw material costs.
Profit attributable to owners of the Company increased by 6.4% year-on-year to HK$171.7 million, improving the net profit margin from 7.9% to 8.9%. Profit and profitability improved over the same period last year mainly due to the implementation of price adjustments to offset the leap in production costs and the profit contribution from the acquisition of minority interests in Zhuhai Golden Coast Winner Food Products Limited last year. The Group’s basic earnings per share for the reporting period increased to 16.45 HK cents.
The financial position of the Group remained healthy, with net cash of approximately HK$1,138.0 million and HK$820.0 million in available banking facilities as at 30 June 2023. The Group had no external borrowing as at 30 June 2023.
Review & Prospects of Instant Noodles and Non-Noodles Businesses
During the reporting period, revenue from Hong Kong and other Asia operations was HK$751.5 million. Its segment results jumped by 26.8% to HK$56.0 million. Meanwhile, for Mainland China operations, revenue of HK$1,177.8 million was recorded for the reporting period, and its segment results amounted to HK$160.6 million. Excluding the foreign currency impact, both segment results improved due to the implementation of price adjustments and the easing of raw material costs.
To drive the instant noodles business, the Group has continued to implement the premiumisation strategy and launch new products to enrich the portfolio. New flavours have been introduced to the “Cup Noodles”, “Raoh”, “Nissin U.F.O”, “Fuku” and “Doll” brands to encourage additional consumption. During the reporting period, the Company offered three premium Japanese flavours of “Cup Noodles” Regular Cup to consumers. To provide consumers with an exciting and enjoyable experience, the Company collaborated with Japanese anime “Jujutsu Kaisen” and “Onmyoji” to launch crossover “Cup Noodles” products respectively in Hong Kong and Mainland China.
The diversification of the portfolio into non-noodles business continues and has reinforced a solid foundation for the Group to overcome adversity. During the reporting period, the Company has further expanded its exposure in various distribution channels to meet the intensified competition in the frozen food industry, while the strategy in Mainland China seems to be effective as the sales volume of frozen food products recorded satisfactory growth. The distribution business in Hong Kong recorded a substantial rebound during the first half of 2023 owing to the easing of pandemic and the revival of economic activities alongside with gradual pick-up in the number of tourist arrival. On top of it, the Company has also completed the acquisition of Hong Kong Eastpeak Limited, which wholly-owns Eastpeak Trading (Shanghai) Co., Ltd., thereby expanding the Group’s distribution network in Mainland China. In addition, the performance of the “Kagome” business was outstanding following the relaxation of pandemic restrictions, and its products received remarkable consumer response from new markets in Southeast Asia. “Aojiru”, a Japanese vegetable drink made from kale, has been strategically added to our portfolio to capture the health-conscious consumers in Mainland China. The Group also saw the sales volume of “Nissin Granola” grow progressively in overseas markets, with a new flavour added to enhance the product collection during the reporting period. In addition, the fresh-cut vegetables business has shown a rising demand and the distribution channels continued to expand ranging from supermarkets to restaurants, cafeterias and coffee shops.
Mr Kiyotaka ANDO, Executive Director, Chairman and Chief Executive Officer of Nissin Foods, said, “The consumer market remains a competitive landscape. We are pleased to see that the strategic initiatives implemented earlier in our business have started to gain positive results, demonstrating outstanding foresight and management capabilities of our management team.
“Our outlook remains cautiously optimistic. To address the future challenges, we will continue to roll out more premium products to delight consumers and pursue further diversification of the business portfolio to non-noodle business. In Mainland China, we will carry on the geographic expansion strategy to penetrate into more areas alongside the development of additional sales channels. In addition, we believe that the acquisition of Nissin Vietnam will enable the Group to explore more market opportunities for premium instant noodles products in Vietnam. Going forward, Nissin Foods will continue to reinforce its overall competitiveness through a well-diversified product portfolio and premiumization strategy, while increasing brand recognition in the operating regions to create long-term value for our customers and shareholders.”
About Nissin Foods Company Limited
Nissin Foods Company Limited (“Nissin Foods”, together with its subsidiaries, the “Group”; Stock code: 1475) is a renowned food company in Hong Kong and Mainland China with a diversified portfolio of well-known and highly popular brands, primarily focusing on the premium instant noodle segment. The Group officially established its presence in Hong Kong in 1984 and is the largest instant noodle company in Hong Kong. The Group primarily manufactures and sells instant noodles, high-quality frozen food products, including frozen dim sum and frozen noodles, and also sells and distributes other food and beverage products, including retort pouches, snacks, mineral water, sauce and vegetable products under its two core corporate brands, namely “NISSIN” and “DOLL” together with a diversified portfolio of iconic household premium 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 Mainland China market, the Group has introduced technology innovation through the “ECO Cup” concept and primarily focuses its sales efforts in first-and second-tier cities.
Nissin Foods is a constituent of eight Hang Seng Indexes, namely: Hang Seng Composite Index, Hang Seng Consumer Goods & Services Index, Hang Seng Stock Connect Hong Kong Index, Hang Seng Stock Connect Hong Kong MidCap & SmallCap Index, Hang Seng Stock Connect Hong Kong SmallCap Index, Hang Seng SCHK Mainland China Companies Index, Hang Seng SCHK ex-AH Companies Index, and Hang Seng Small Cap (Investable) Index. Nissin Foods is eligible for trading under Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect. For more information, please visit www.nissingroup.com.hk.
Topic: Press release summary
Nissin Foods Completes Acquisition of Equity Interest in Hong Kong Eastpeak Limited
Nissin Foods Company Limited (“Nissin Foods”, together with its subsidiaries, the “Group”; Stock code: 1475) completed today the acquisition of 19% equity interest in Hong Kong Eastpeak Limited (“Hong Kong Eastpeak”), which wholly owns Eastpeak Trading (Shanghai) Co., Ltd. (“Shanghai Eastpeak”), making the two companies officially its wholly-owned subsidiaries on 3 July 2023.
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| Shanghai Eastpeak distributes Japanese food and beverage products in Mainland China. The key brands and products include: Demae Iccho crisp choco, Demae Iccho Yingyou green juices, KAGOME vegetable juices, Koikeya potato chips, Akai Bohshi biscuits and UCC coffee drinks, covering more than 300 products in 6 different categories. |
Shanghai Eastpeak, which carries imported Japanese brand food and beverage products, is the distribution arm of the Group in Mainland China. Key brands it distributed include: Nissin, Demae Iccho, KAGOME, UCC and Akai Bohshi, etc., covering more than 300 products in 6 different categories. Its sales network comprises large domestic chain stores, high-end boutique supermarkets, convenience stores, and major online platforms in Mainland China.
Mr. Kiyotaka ANDO, Executive Director, Chairman and Chief Executive Officer of Nissin Foods, said, “With the acquisition completed, we will have greater flexibility in deploying our operational capabilities in Mainland China. Distribution business is of strategic importance to the Group in achieving vertical development. We can now speed up integrating the business into the Group and expect to see greater yet synergies generated between the business and MC Marketing & Sales (Hong Kong) Limited, our distribution arm in Hong Kong, ultimately helping the Group improve its income and overall competitiveness.”
In January 2020, Nissin Foods and Ms. LIU Feng, director and general manager of Shanghai Eastpeak, entered into a shareholders’ and cooperation agreement to form a joint venture company i.e. Hong Kong Eastpeak, 81% held by Nissin Foods and 19% by Ms. LIU. After Ms. LIU’s resignation from Shanghai Eastpeak in December 2022, the Group exercised the relevant call option and acquired her 19% stake in Hong Kong Eastpeak.
About Nissin Foods Company Limited
Nissin Foods Company Limited (“Nissin Foods”, together with its subsidiaries, the “Group”; Stock code: 1475) is a renowned food company in Hong Kong and Mainland China with a diversified portfolio of well-known and highly popular brands, primarily focusing on the premium instant noodle segment. The Group officially established its presence in Hong Kong in 1984 and is the largest instant noodle company in Hong Kong. The Group primarily manufactures and sells instant noodles, high-quality frozen food products, including frozen dim sum and frozen noodles, and also sells and distributes other food and beverage products, including retort pouches, snacks, mineral water, sauce and vegetable products under its two core corporate brands, namely “NISSIN” and “DOLL” together with a diversified portfolio of iconic household premium 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 Mainland China market, the Group has introduced technology innovation through the “ECO Cup” concept and primarily focuses its sales efforts in first-and second-tier cities.
Nissin Foods is a constituent of eight Hang Seng Indexes, namely: Hang Seng Composite Index, Hang Seng Consumer Goods & Services Index, Hang Seng Stock Connect Hong Kong Index, Hang Seng Stock Connect Hong Kong MidCap & SmallCap Index, Hang Seng Stock Connect Hong Kong SmallCap Index, Hang Seng SCHK Mainland China Companies Index, Hang Seng SCHK ex-AH Companies Index, and Hang Seng Small Cap (Investable) Index. Nissin Foods is eligible for trading under Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect. For more information, please visit www.nissingroup.com.hk.
Topic: Press release summary
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