Nissin Foods Holdings Co., Ltd. · TSE:2897
Nissin Foods — H1 FY3/2025 Earnings Presentation
46 slides from Nissin Foods's earnings presentation, November 2024
Slide 1: Machine translation notice
Notice: This document was prepared by machine translation（T-4OO), and manual modification has not been made to the translated contents. 0
Slide 2: CFO introduction and agenda
This is Yano in CFO. Today, I will explain mainly the first item in the table, and the content of the first-half results of FY2024. The second item, “Progress of H1 and Direction for FY 3/2025”, will be explained by CEO and COO at the financial results briefing scheduled tomorrow. I will reference t
Slide 3: Summary of key points
Please refer to page 2. This is a summary of today's key points. First, regarding the “FY 3/2025 H1 Financial Results,” revenue increased by 8% year-on-year (YoY), with sales growth observed in both domestic and overseas businesses. Core operating profit of existing businesses posted a 6% YoY declin
Slide 4: H1 FY2024 financial results
Please refer to page 3. These are the financial results for the first half of FY2024. Revenue reached a record high of 378.1 billion yen for the first half, an increase of 7.9% or 27.7 billion yen compared to the previous period. Core operating profit from existing businesses was 44.5 billion yen, a
Slide 5: Core operating profit change factors
Please refer to page 4. This page analyzes the factors affecting changes in core operating profit from existing businesses for the first half, displayed on a "constant currency basis." Although there was an increase in revenue, shown in the second pink graph from the left, the increase in costs, sho
Slide 6: Quarterly core operating profit change factors
Please refer to page 5.This page analyzes the factors affecting changes in core operating profit from existing businesses on a quarterly basis. Although core operating profit from existing businesses decreased by 3.1 billion yen compared to the previous year, breaking it down by quarter, the first q
Slide 7: Revenue and core operating profit by division
Page 6 summarizes the revenue and core operating profit by business division, showing revenue increases in all businesses, with only the overseas business seeing a decrease in core operating profit from existing businesses. 6
Slide 8: Revenue by segment
Details will be explained on the following pages, so please refer to page 7. This page breaks down revenue by segment. The domestic instant noodles business saw an increase of 5.2 billion yen or 4.1% compared to the previous year. The domestic non-instant noodles business saw an increase of 8.7 bill
Slide 9: Core operating profit by segment
Please refer to page 8. The core operating profit by segment shows that the domestic instant noodles business saw an increase of 0.9 billion yen or 5.4% compared to the previous year, and the domestic non-instant noodles business saw an increase of 0.7 billion yen or 8.3% compared to the previous ye
Slide 10: Management issues and direction
I will explain mainly how to deal with management issues, evaluate the first-half result of FY3/ 2025, and explain the direction of management. NISSIN FOOD PRODUCTS and new businesses will be explained later by COO Noritaka Ando. 9
Slide 11: Management issues overview
I will explain the first issue of thorough legal compliance on page 11,. Regarding the second point, existing businesses: The Americas, which is the driving force behind sales in foreign regions, particularly the U.S. and Brazil, are seeing steady growth in demand, and sales continue to be strong. W
Slide 12: Thorough compliance with laws and regulations
I will explain our thorough compliance with laws and regulations. First, on August 22, NISSIN FOOD PRODUCTS was warned by the Fair Trade Commission that it might violate the Antimonopoly Act, which prohibits resale price maintenance. We would like to take this opportunity to express our sincere apol
Slide 13: Annual plan for core operating profit
Go to page 12. Yesterday, Yano, CFO explained, but core operating profit of existing businesses for the first-half of the current fiscal year is YoY Chage lower, but it exceeds the internal plan, so there is no need for you to worry about this decline. I would like to explain the assembly of core op
Slide 14: U.S. business and non-instant noodles
Next, I will explain the U.S. business and Non-Instant Noodles Businesses as major topics. First, the U.S. business for the current fiscal year is progressing steadily as planned, as described in the upper left. Last year, there was downward pressure on profits in the second half (2H), mainly due to
Slide 15: U.S. premium products and third plant
While securing revenue on a product basis, we intend to further expand and invigorate the entire U.S. instant noodle market and strengthen the overall NISSIN brand. We will achieve this by expanding our portfolio of high-value-added, high-margin premium products that are unique to us over the long t
Slide 16: Nissin York and Koike-ya advancements
Next, I will discuss the advancements of NISSIN YORK and KOIKE-YA in the Non-Instant Noodles Businesses. Both companies view the Non-Instant Noodles Businesses as a successful model, achieving a virtuous cycle where they can increase their presence and profitability by continuously introducing high-
Slide 17: Domestic Nissin Food Products and new businesses
I am Noritaka Ando, president of NISSIN FOOD PRODUCTS. I would like to explain the domestic NISSIN FOOD PRODUCTS businesses and new businesses. 16
Slide 18: Instant noodles business status
Please turn to page 17. This page shows the status of NISSIN FOODS' instant noodles business up to the first half of the fiscal year. After the price revision in FY2023, both revenues and volume have been trending in the low-single digit % YoY growth in the second quarter. As shown on the right side
Slide 19: Second half initiatives
On page 18, we provide information on NISSIN FOOD PRODUCTS's initiatives in the second half and beyond. For the second half, we aim to continue expanding our core brands and elevate our bag- type noodles and cup-type rice to the next stage. Starting from the left side, we plan to achieve record sale
Slide 20: Basic Research for Optimized Nutri-Dense Meals
Basic Research for Optimized Nutri-Dense Meals 19
Slide 21: Clinical trial of optimized nutri-dense meals
Next, on page 20, we will explain basic research on optimized nutri-dense meals. We presented the result of a clinical trial at a conference three years ago. People usually eat three meals a day for a total of 90 meals in a month. This clinical trial verifies how human vital data changes when 40 out
Slide 22: One meal a day trial results
On page 21, this is the result of a clinical trial in which an optimized nutri-dense meal was taken one meal a day over four weeks. This was presented at an academic conference this summer. As a result of eating one meal per day, improvements were confirmed in stress, fatigue, and sleep. Moreover, i
Slide 23: Meals for patients
Next, on page 22, we are developing optimized nutri-dense meals for patients. We conducted clinical trials for patients with diabetes and hypertension. As you know, these patients have strict dietary restrictions and are often advised to avoid junk food like hamburgers, ramen, tonkatsu, curry, and p
Slide 24: Meals for seniors
Moving on to page 23, Japan's aging society presents a large potential market for senior- targeted optimized nutri-dense meal. Seniors often lack essential nutrients like protein, calcium, omega-3 fatty acids, vitamins A and K. Our optimized nutri-dense meal is fortified with these nutrients. Since
Slide 25: Pursue New Businesses
Pursue New Businesses 24 24
Slide 26: KANZEN MEAL sales targets
Let's start with page 25. Based on our research, we launched the "KANZEN MEAL" brand in 2022. Our sales targets were 3 billion yen for 2022, 5 billion yen for 2023, and 7 billion yen for this year. We are currently exceeding our plan for the first half of the year, so we aim to surpass 7 billion yen
Slide 27: First-half performance vs plan
Moving on to page 26. Our first-half performance was 116% of our plan, and we aim to maintain this momentum in the second half. We have several categories: On the left, we have unchilled products, such as instant noodles and shelf-stable items. This half, we launched products like “SHIRUNASHI SEAFOO
Slide 28: Brand recognition and meals sold
Next, on page 27. The "KANZEN MEAL" brand surpassed 34 million meals in the first half, achieving a 50% brand recognition rate. For comparison, "CURRY MESHI," which grew significantly during the rice shortage, has a 49% recognition rate. The "KANZEN MMEAL SHIRUNASHI CUP NOODLES SEAFOOD" was a hit pr
Slide 29: Second half new products
Moving on to page 28. In the second half, we will introduce our first "KANZEN MEAL" products that require cooking, such as retort pasta sauces launched on September 23. These sauces provide optimized nutrition when mixed with 100g of cooked pasta. We plan to expand into other sauces like curry and m
Slide 30: Collaborations in bread and bento
On page 29. In the bread category, we collaborated with Yamazaki Baking to extend the originally planned two months launch to three months, indicating potential in the bread market. We also collaborated with AUBERGINE, a popular bento brand, to recreate their curry as a "KANZEN MEAL" product, which
Slide 31: Corporate cafeterias and retail partnerships
We are promoting "KANZEN MEAL" cafeterias in corporate offices as part of the health management trend. Major companies like Mitsubishi Corporation, ITOCHU Corporation, Meiji Yasuda Life Insurance Company, Rakuten, and Japanet Takata have adopted this initiative. We are also introducing "KANZEN MEAL"
Slide 32: KANZEN MEAL expansion opportunities
Finally, on page 31. Over the past two years, we have discovered that "KANZEN MEAL" technology can be applied to various categories where Nissin has not previously ventured. We will continue our traditional channels with instant noodles, cup-rice, beverages, frozen foods, bread, and snacks. Addition
Slide 33: Status of Our Businesses
Status of Our Businesses 32
Slide 34: Domestic instant noodles business
Please refer to page 33. First, the domestic instant noodles business. Sales increased due to a low single-digit volume increase for both Nissin Foods and Myojo Foods, supported by price revisions and new products. Although profits increased for the first half overall, the second quarter saw a decre
Slide 35: Domestic non-instant noodles business
| Domestic Non-Instant Noodles Business we + YORK saw strong performance from lactobacillus beverages PILKUL 400 and TOKACHI DRINK YOGURT, while KOIKE-YA's core products continued to perform well, contributing to revenue growth. BonChi improved its performance drastically. Despite increased raw mate
Slide 36: The Americas
In the U.S., demand for relatively affordable instant noodles remains high, with both volume and value increasing compared to the previous year. Nissin Foods USA saw a low-single digit volume increase in the second quarter compared to the previous year. Despite ongoing inflation, base products conti
Slide 37: China (incl. Hong Kong)
Please refer to page 36. In Hong Kong, exports of our mainstay instant noodles "Demae Iccho" have been performing well, and domestic sales are also on a recovery trend. However, the trend of "northbound consumption," where Hong Kong residents spend weekends in Shenzhen, continues to negatively impac
Slide 38: Asia
| Asia id + Revenue increased, and profit also increased mainly driven by increase in equity method gains. In Thailand, high-value-added bag-type noodles performed well. Revenue (il. Yen) MM FY 3/2024 MM FY 3/2025 By descending order of revenue Thailand H1 : Increased (Forex impact +0.2 Bil. yen) In
Slide 39: EMEA
Please refer to page 38. Finally, let me explain the situation in the EMEA region. Europe has seen significant market growth in the bag noodle in addition to cup type, our sales of bag type noodles, particularly "Demae Iccho," performing well, leading to continued revenue growth. Notably, sales volu
Slide 40: Appendix
Appendix 39
Slide 41: FY 3/2025 Full-Year Earnings Plan
Disclosed on May 13, 2024 Reprinted materials from "Financial Results for FY 3/2024" ANISSIN| ] FY 3/2025 Full-Year Earnings Plan ¢ We aim for revenue growth of 7.1% YoY and core operating profit of existing businesses is projected to increase by 5.0% YoY to 84.6 billion yen. * We also aim for recor
Slide 42: FY 3/2025 Plan by Segment
Disclosed on May 13, 2024 Reprinted materials from "Financial Results for FY 3/2024" ANISSIN| | FY 3/2025 Plan by Segment Revenue (IFRS) Core Operating Profit (Non-GAAP) Bil. Yen FY 3/2025 FY 3/2024 Results FY 3/2025 FY 3/2024 Results Plan Revenue YoY change Plan Core OP YoY change NISSIN FOOD PRODU
Slide 43: * Quantities are stated on a management basis. * Changes in U.S. revenue are
* Quantities are stated on a management basis. * Changes in U.S. revenue are the sum of NISSIN FOODS (U.S.A.) and Meisei USA 42
Slide 44: Major Price Revisions (Domestic)
Instant Noodles Business Chilled / frozen foods | Major Price Revisions (Domestic) FY 3/2020 ~ FY 3/2022 FY 3/2023 NISSIN FOOD PRODUCTS MYOJO FOODS jun, 2019 (NISSIN FOOD 4-8%, Jun.(NISSIN FOOD 5-12%, MYOJO 3-7%) MYOJO 6-12%) CHILLED g FOODS e Apr. 2019 (3-9%) Mar. 2022 (6-12%) Mar.(7-17%) 8 FROZEN
Slide 45: Major Price Revisions (Overseas)
The Americas | Major Price Revisions (Overseas) FY 3/2020 — FY 3/2021 us. Apr. 2019 (Bag, Cup) Brazil May 2020 Nov. 2020 Feb. 2021 (Bag, Cup) (Bag, Cup) (Bag, Cup) Mexico* ST lanante or Implemented gradually each channel China (incl. H.K.) HK Jul, 2019 (Cup) Asia Implemented in some regions EMEA Imp
Slide 46: Disclaimer
Sa Company plans, business forecasts, strategies, and other information contained in this document are based on management judgments derived from information available at the time of this publication. Be aware that these are only future projections, and actual results may differ due to various risks
Nissin Foods Holdings — H1 FY3/2025 Earnings Presentation on 6ix