Nissin Foods Holdings Co., Ltd. · TSE:2897
Nissin Foods — H1 FY3/2025 Earnings Presentation
46 slides from Nissin Foods's earnings presentation, Nov 11, 2024
Slide 1: Financial Results for FY 3/2025 H1
Financial Results for FY 3/2025 H1 November 11, 2024 NISSIN FOODS HOLDINGS CO., LTD. (TSE Stock Code: 2897) Financial Results Presentation: November 12, 2024
Slide 2: Contents
I. FY 3/2025 H1 Financial Results ・・・・・・・・・ P2~ Takashi Yano, Executive Officer and CFO II. Progress of H1 and direction for FY 3/2025 ・・・・・・・・・ P9~ Koki Ando, Representative Director, President and CEO Noritaka Ando, Executive Vice President & Representative Director, COO and President & Representa
Slide 3: Today's Points
Today's Points Core operating profit of existing businesses surpassed internal plan despite decreased YoY, overall business trend is robust Point 1: 3/2025 H1 Financial Results • Revenue increased by 8% YoY, with all businesses showing growth. Core operating profit of existing businesses decreased
Slide 4: FY 3/2025 H1 Consolidated Financial Summary
FY 3/2025 H1 Consolidated Financial Summary Institutional accounting basis Constant currency basis Bil. yen YoY change YoY change FY 3/2025 FY 3/2025 H1 H1 Amount Ratio Amount Ratio Revenue 378.1 + 27.7 + 7.9% 370.4 + 20.0 + 5.7% Core operating profit 44.5 (3.1) (6.4%) 43.2 (4.4) (9.2%) of existing
Slide 5: Analysis of Core OP of Existing Businesses
Analysis of Core OP of Existing Businesses Domestic (2.5), Overseas (3.3) Domestic: -) Increase in promotional cost etc. Domestic and overseas: +) Price revision, increase in volume, etc. Overseas: -) Increase in marketing cost in the Americas etc. △6 Overseas (Bil. Yen) + 9.4 Overseas +2.7 YoY Dome
Slide 6: Analysis of Core OP of Existing Businesses (quarterly basis)
Analysis of Core OP of Existing Businesses (quarterly basis) Q1 Q2 (Bil. Yen) Domestic +1.9, Overseas +0.7 (Bil. Yen) Domestic +4.8, Overseas +2.0 Domestic (0.6), Overseas (1.6) + 2.6 Domestic (2.0), Overseas (1.8) YoY + 6.8 YoY (2.7) (4.2) + 1.1 + 0.3 (2.5) (2.1) (1.1) (17%) + 1.1 + 5% (1.2) (3.7)
Slide 7: Financial Summary by Segment
Financial Summary by Segment • Consolidated revenue increased by 8%,YoY, due to growth in all businesses. • Domestic business profit increased as higher sales offset higher materials and fixed costs. Overseas business profit decreased due to higher distribution costs and fixed costs. Domestic Domest
Slide 8: Revenue Results by Segment
Revenue Results by Segment ・Revenue increased in all businesses, performed well Institutional accounting basis Constant currency basis Bil. yen FY 3/2025 YoY change FY 3/2025 YoY change H1 Amount Ratio H1 Amount Ratio NISSIN FOOD PRODUCTS 111.1 + 3.3 + 3.1% 111.1 + 3.3 + 3.1% MYOJO FOODS 22.2 + 1.9
Slide 9: Core OP Results by Segment
Core OP Results by Segment • Profit decreased mainly due to upfront investment in the U.S. and lower profits at equity-method affiliates in Europe. FY 3/2025 H1 Institutional accounting basis FY 3/2025 H1 Constant currency basis Bil. yen Other Income YoY change YoY change OP and Expenses Core OP Cor
Slide 10: Progress of H1 and Direction for FY 3/2025
Progress of H1 and Direction for FY 3/2025 9
Slide 11: Response to Management Issues and Direction for FY3/2025
Response to Management Issues and Direction for FY3/2025 (1) Thorough compliance with laws and regulations NISSIN FOOD PRODUCTS received a “warning” from Japan Fair Trade Commission(JFTC) concerning the possibility of violating the Antimonopoly Act which prohibits resale price restriction, on Augu
Slide 12: Formulate Improvement Measures in Response to Warnings from the JFTC
Formulate Improvement Measures in Response to Warnings from the JFTC • NISSIN FOODS Group will establish strict rules for sales activities and an effective educational system to ensure that all Group employees are thoroughly aware of legal compliance and establish an auditing system to thoroughly mo
Slide 13: Progress of core operating profit from existing businesses for FY3/25
Progress of core operating profit from existing businesses for FY3/25 • For FY3/2024, core operating profit from existing businesses for H1 was greater than that for H2. This was mainly due to strong performance of U.S. business in H1 and more investment in H2. • For FY3/2025, our initial plan was b
Slide 14: Overseas Business (U.S.)
Overseas Business (U.S.) • We expect more profit in H2 for FY 3/2025,YoY, partly due to evenly balanced allocation of expenses to each period. H1 Results and H2 Plan Measures for FY 3/2025 • Although revenue increased and profit decreased, H1 results were in line with the plan 1st Half • We expect b
Slide 15: Overseas Business (U.S.)
Overseas Business (U.S.) • Aiming to expand the instant noodles market in the U.S. through both base products that can secure stable earnings and premium products that are the key to profit growth. Future Direction of Premium and Base Products Volume and price strategy Image of volume growth Premium
Slide 16: Non-Instant Noodles Business (NISSIN YORK, KOIKE-YA)
Non-Instant Noodles Business (NISSIN YORK, KOIKE-YA) • NISSIN YORK: Enhancing brand value by developing products that meet the latent needs of consumers. • KOIKE-YA: Pursuing “quality” by sticking to use domestically produced ingredients. Established a new “KOIKE-YA” brand, starting with PRIDE POTAT
Slide 17: NISSIN FOOD PRODUCTS and New Businesses
NISSIN FOOD PRODUCTS and New Businesses 16
Slide 18: Domestic Instant Noodles business (NISSIN FOOD PRODUCTS)
Domestic Instant Noodles business (NISSIN FOOD PRODUCTS) • Revenue and volume increased at low-single digit percentage, YoY, in Q2 even after the price revision in FY3/2024. • Product mix improved through the strategic marketing investment. FY3/22-FY3/25 NISSIN FOOD PRODUCTS Sales +6% H1 Price revis
Slide 19: Domestic Instant Noodles business (NISSIN FOOD PRODUCTS)
Domestic Instant Noodles business (NISSIN FOOD PRODUCTS) • Aim to expand core products and boost bag-type noodles and cup-type rice to the next stage Enhance core brand value through strategic marketing measures CUP NOODLE DONBEI U.F.O. CHICKEN RAMEN Aiming for highest sales Aiming for highest sales
Slide 20: Basic Research for Optimized Nutri-Dense Meals
Basic Research for Optimized Nutri-Dense Meals 19
Slide 21: Improvement of Vital Data in Clinical Trials
Improvement of Vital Data in Clinical Trials % of people who % of people who % of people who lost weight ※１ lowered BMI ※２ lowered blood pressure※3 % of people who % of people who % of people who improved performance at work ※５ increased frequency of reduced visceral fat area ※４ defecation ※6 ※1 Wei
Slide 22: Latest Clinical Trial Results
Latest Clinical Trial Results One optimized nutri-dense meal per day for 4 weeks Confirmed improvement in stress, fatigue, and sleep ＝ Can be utilized to improve well-being Launched at the 71st Annual Meeting of THE JAPANESE SOCIETY FOR FOOD SCIENCE AND TECHNOLOGY *August 31, 2024 Subjects ： Adult m
Slide 23: Optimized nutri-dense meals for diabetes and hypertension patients
Optimized nutri-dense meals for diabetes and hypertension patients (Improvement of quality of life in dietary restrictions) In the model for the sick, we saw blood glucose and blood pressure reductions in clinical trials with optimized nutri-dense meals with a low-sodium and carbohydrate (one meal r
Slide 24: Optimized nutri-dense meals for seniors
Optimized nutri-dense meals for seniors: Fortified with protein, n-3 fatty acids, etc. Improvements observed in gait speed, cognitive function, and sense of well-being Nutrients, Volume 15, 2023, 4317 Clinical trials for pre-frail and frail individuals Eating two meals a day for a total of 168 Optim
Slide 25: Pursue New Businesses
Pursue New Businesses 24
Slide 26: Becoming a 10.0 billion yen brand
FY 3/2026 Becoming a 10.0 billion yen brand FY 3/2023 Act. : 3.0 billion yen FY 3/2024 Act. : 5.0 billion yen FY 3/2025 Plan: 7.0 billion yen FY 3/2026 Plan: 10.0 billion yen *Based on the retail store price 25
Slide 27: Steady increase in sales toward "10 Billion Yen Brand"
Steady increase in sales toward “10 Billion Yen Brand” ~Exceeded the plan in the first half of FY3/2025 ! Beyond food division FY3/2025 results (market price): 116% vs Plan Unchilled Frozen B to B Employee cafeteria Retailers Retailers Catering-type Online store company cafeteria Stand-alone co
Slide 28: "KANZEN MEAL" for FY3/25 H1
“KANZEN MEAL” for FY3/25 H1 Total servings exceeded 34 million! Brand recognition rate of 50%*! The “KANZEN MEAL” continues to evolve, and new products are being introduced one after another! *Score of grant recognition by presenting the brand name and logoSurvey period/methodology Web / Nationwide
Slide 29: "KANZEN MEAL" for 2H
“KANZEN MEAL” for 2H Launched first KANZEN MEAL, a sauce for cooking (retort type). Expanding into new categories Unchilled Frozen Cup-type noodles Cu-type rice Chanpon noodles, Gapao rice and Fried rice launched from “FROZEN KANZEN MEAL DELI“. As of October, there are 31 dishes in total. New releas
Slide 30: Expand ready-made meal categories such as bread and boxed meals
Expanding Touch Points Expand ready-made meal categories such as bread and boxed meals Expand categories and markets through collaboration with other companies Expand bread category Collaboration with popular boxed meal Launched LUNCH PACK (KANZEN MEAL CURRY) supervised Launched KANZEN MEAL AUBERGIN
Slide 31: We are expanding the variety and scale of category and menus
Expanding Touch Points We are expanding the variety and scale of category and menus Expansion of the number of menus and stores Approaching office workers in company cafeteria business in boxed meal business KANZEN MEAL boxed lunches (Meal Services) In collaboration with some retail chains. The fres
Slide 32: Retail Sales, Employee Cafeterias, Healthcare Cooperation
1 Packaged Foods Retail Sales Lunch Boxes, Prepared Foods, Base Ingredients Instant cooked Beverage Frozen Foods Bread Snack noodles rice ２ Employee Cafeterias ３ Healthcare Cooperation ・ Lifestyle modification using the app Health management promotion ・ Improve QOL of diabetics, hypertensives, etc.
Slide 33: Status of Our Businesses
Status of Our Businesses 32
Slide 34: Domestic Instant Noodles Business
Domestic Instant Noodles Business • Core brands and new products drove sales, achieving revenue and profit growth despite rising materials cost, etc. Revenue (Bil. Yen) FY 3/2024 FY 3/2025 NISSIN FOOD PRODUCTS (H1 +3%) 180.0 300 Cup type : Sales of mainstay products such as CUP NOODLE, NISSIN NO DON
Slide 35: Domestic Non-Instant Noodles Business
Domestic Non-Instant Noodles Business • 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 material
Slide 36: The Americas
The Americas • Strengthening propositions and promoting the introduction of high-value-added products, and production recovery in Brazil, led to revenue growth. Profit decreased YoY due to higher costs, but outperformed the plan. Revenue (Bil. Yen) FY 3/2024 FY 3/2025 U.S. H1 : Increased due to stre
Slide 37: China (incl. H.K.)
China (incl. H.K.) • Revenue and profit increased in the segment as a whole. Sales growth was driven by cup-type products in Mainland China. Mainstream bag-type products in Hong Kong returned to a recovery trend. Revenue (Bil. Yen) FY 3/2024 FY 3/2025 50.0 100 Hong Kong and H1 : Recovering sales vol
Slide 38: Asia
Asia • 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 (Bil. Yen) FY 3/2024 FY 3/2025 14.0 By descending order of revenue 25 12.0 形式︓拡張メタファイル 20 10.0 Thailand H1 : Increased (Forex i
Slide 39: EMEA
EMEA • Revenue continued to increase in the rapidly growing instant noodles market, but profit decreased mainly due to decrease in equity method gains. Revenue (Bil. Yen) FY 3/2024 FY 3/2025 EMEA H1 : Increased (Forex impact +0.9 Bil. yen) • Soba and Demae Ramen brands continued to perform well • In
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" 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 record highs in
Slide 42: FY 3/2025 Plan by Segment
Disclosed on May 13, 2024 Reprinted materials from "Financial Results for FY 3/2024" 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 PRODUCTS 241.5 2
Slide 43: Revenue and Volume in the Americas and Overseas (YoY)
Revenue and Volume in the Americas and Overseas (YoY) Base products : +low-single digit % Premium products : +10% level FY3/2024 FY3/2025 Q2 Q3 Q4 Q1 Q2 FY3/2025 (Jul.-Sep.) (Oct.-Dec.) (Jun.-Mar.) (Apr.-Jun.) (Jul.-Sep.) Plan YoY Revenue* Volume Revenue* Volume Revenue* Volume Revenue* Volume Reven
Slide 44: Major Price Revisions (Domestic)
Major Price Revisions (Domestic) FY 3/2020 ~ FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2025 Business NISSIN FOOD Noodles Instant PRODUCTS MYOJO FOODS Jun. 2019 (NISSIN FOOD 4-8%、 Jun.(NISSIN FOOD 5-12%、 Jun. (NISSIN FOOD 10-13% MYOJO 3-7%) MYOJO 6-12%) MYOJO 9-12%) CHILLED Chilled / frozen foods FOODS and
Slide 45: Major Price Revisions (Overseas)
Major Price Revisions (Overseas) FY 3/2020 – FY 3/2021 FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2025 U.S. Apr. 2019 (Bag, Cup) May (Bag, Cup) Jan. (Bag, Cup) Aug. Average 36% The Americas (Bag, Cup) Brazil May 2020 Nov. 2020 Feb. 2021 Jul. (Bag) Feb. (Bag, Cup) May (Bag, Cup) Jun. (Bag, Cup) Jul. (Bag) (B
Slide 46: Cautionary statement on forward-looking information
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 an
Nissin Foods Holdings — H1 FY3/2025 Earnings Presentation on 6ix