Nissin Foods Holdings Co., Ltd. · TSE:2897
Nissin Foods — Q3 FY3/2023 Earnings Presentation
19 slides from Nissin Foods's earnings presentation, 2023
Slide 1: FY 3/2023 3Q Financial Results
• My name is Takashi Yano, CFO of NISSIN FOODS HOLDINGS. • Today, I will report on FY 3/2023 3Q financial results. 0
Slide 2: Three main points
• I will cover three main points today. • First, we delivered double-digit percentage growth year on year for revenue and profit on a consolidated basis for the cumulative 3Q. Performance was strong in our Overseas Business, particularly in the U.S., offsetting struggles in our Domestic Business cau
Slide 3: 3Q cumulative results and full-year forecast revisions
• First, let’s look at 3Q cumulative results, shown on the left. • Revenue increased to 501.5 billion yen, a record high for any third quarter and up 18.0%, or 76.7 billion yen year on year. This performance was driven by our Overseas Business, particularly in the U.S. • Core operating profit of exi
Slide 4: Factors behind change in core operating profit
• This page provides an analysis of the factors behind changes in core operating profit of existing businesses for the cumulative 3Q. The figures are presented on a constant currency basis, which is the same as P.9 of the Financial Supplemental Data. The third column from the right indicates 3.3 bil
Slide 5: Impact of raw materials cost hikes
• Page 4 shows the impact of raw materials cost hikes. • The left side of the graph shows the initial plan at the beginning of the fiscal year. Our assumptions were based on the situation before the crisis in Russia and Ukraine, and we projected cost increases of 17 billion yen year on year as a res
Slide 6: Revenue by segment
• This slide provides a breakdown of revenue by segment. • All segments posted higher revenue, but the largest growth was in our Overseas Business. In particular, revenue in the Americas rose by more than 60%, while all regions reported growth in the double digits, ranging from 20% to 40%. This perf
Slide 7: Core operating profit by segment
• This slide shows the results of core operating profit by segment. • On a consolidated basis, Overseas Business profit covered the decline in Domestic Business profit, with existing businesses producing a year-on-year increase of 7.9 billion yen, or 18.0%, to 51.4 billion yen. The Overseas Business
Slide 8: Domestic Instant Noodles Business
• Pages 7 to 12 indicate performance by segment. • First, I’ll address the Domestic Instant Noodles Business. • According to information from the Japan Convenience Foods Industry Association, conditions in the third quarter after price revisions were strong for the market as a whole on a volume basi
Slide 9: Non-Instant Noodles Businesses
• The Non-Instant Noodles Businesses found support from the strong performance of YORK’s PILKUL MIRACLE CARE, which launched in late September, as well as from KOIKE-YA, whose POTATO CHIPS series, redesigned SUCORN, and other regular products enjoyed strong sales. • The Frozen Foods Business saw a s
Slide 10: Performance in the Americas
• This is the performance in the Americas. • In the U.S., the volume remained positive year-on-year, even after the major price revisions in August. Coupled with the effect of the price revision, profits increased significantly. Demand for base products, whose profit margins have increased significa
Slide 11: Performance in China (including H.K.)
• In China (including H.K.), we maintained profit growth despite the impact of raw materials price hikes. We accomplished this growth through March and April price revisions in China and Hong Kong, respectively. • And while the year-on-year growth rate for the stand-alone third quarter may seem low,
Slide 12: Performance in Asia
• In Asia, revenue increased across all regions. • Core operating profit fell for the cumulative third quarter due to the ongoing negative impact of rising costs and the residual effects of price controls on Thailand NISSIN and Thai President Foods profits. Looking at the stand-alone third quarter,
Slide 13: Performance in EMEA
• In the fast-growing instant noodles market of the EMEA, cumulative third quarter revenue grew roughly 1.5 times over the same period in the previous fiscal year. • In terms of profit, equity method affiliates contributed a total of 2.5 billion yen for the cumulative third quarter. This result was
Slide 14: Appendix
Appendix 13
Slide 15: Reference: Revenue and Volume in the Americas and Overseas
| Reference: Revenue and Volume in the Americas and Overseas (YoY) Revenue Volume Revenue Revenue Volume — 3Q (Apr.-Dec.) —— Revenue 6 +low-single 9 +low-single y +low-single 9 tlow-single Us. +18% digit % +37% digit % +59% digit % *30% digit % ‘ 9 +low-double 9 +high-single 9 +low-single 9 +low-dou
Slide 16: Price Revisions (Domestic)
| Price Revisions (Domestic) Instant Noodles Chilled / frozen foods Business and beverages Confectionery Domestic Instant Noodles Business plans price revision in June 2023 FY 3/2020 ~ FY 3/2021 NISSIN FOOD PRODUCTS, MYOJO FOODS Jun. 19 (NISSIN FOOD 4-8%, MYOJO 3-7%) CHILLED FOODS Apr. 19 (3-9%) FRO
Slide 17: Price Revisions (Overseas)
| Price Revisions (Overseas) The Americas Implement price revisions in accordance with conditions in each region FY 3/2020 ~ FY 3/2021 U.S. Apr. 19 (Bag, Cup) Brazil May 20 Nov.20 Feb. 21 (Bag, Cup) (Bag, Cup) (Bag, Cup) Mexico* “Implemented for each channel Implemented gradually China (Incl. H.K.)
Slide 18: Reference: Historical Consumer Price and Corporate Goods Price in Japan and US
] Reference: Historical Consumer Price and Corporate Goods Price in Japan and US Historical Consumer Price Index and Historical Consumer Price Index (CPI) and Corporate Goods Price Index in Japan Producer Price Index (PPI) in US January 2018 - December 2022 January 2018 — December 2022 12% 12% 10% 1
Slide 19: Forward-looking statements 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
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