Revenue of the Group amounted to HK$2,685.6 million, representing a year-on-year (YoY) increase of 14.4% from HK$2,348.1 million. Gross profit increased by 16.3% YoY to HK$895.9 million (2019: HK$770.1 million), with gross profit margin increasing by 0.6pp to 33.4% (2019: 32.8%), mainly attributable to the reduction in utility overheads, the relatively stable price for key raw-materials YoY as well as the shift of product mix in Hong Kong, but offset by the increase in the purchase of finished goods. Profit attributable to owners of the Company was HK$264.0 million, representing an increase of 25.0% YoY from HK$211.2 million. Segment results improved by double-digit growth of 34.5% YoY to HK$346.9 million from HK$258.0 million.
For the Hong Kong operations, revenue recorded an increase of 11.6% YoY to HK$1,071.3 million (2019: HK$960.2 million), mainly attributable to the surge in demand for most types of instant noodles and frozen food products in Hong Kong, as customers were more inclined to stay home due to the COVID-19 pandemic.
As for the PRC operations, revenue increased by 16.3% YoY (in local currency: 19.9%) from HK$1,388.0 million to HK$1,614.3 million, due to improvement in sales volume of cup-type instant noodles and the made-in-Hong Kong bag-type instant noodles in PRC.
Mr. Kiyotaka ANDO, Executive Director, Chairman and Chief Executive Officer of Nissin Foods, said, "While the COVID-19 pandemic continues to have a far-reaching socio-economic impact on people around the world, we at Nissin Foods feel privileged that our products are well received by consumers and that our business fundamentals remain solid. The Group has continued to deliver steady results in the third quarter of 2020, with double-digit revenue growth in Hong Kong and the PRC. What's more, Nissin Foods has been added as a constituent of the Hang Seng family of indexes during the reporting period. The inclusion reflects investors' unwavering trust in Nissin Foods, as well as the capital market's recognition of the Group's performance and business outlook. Going forward, we will continue to look for good opportunities to broaden our revenue stream and enhance our overall competitiveness, so as to bring sustainable returns to our shareholders."
About Nissin Foods Company Limited
Nissin Foods Company Limited (The "Group"; Stock code: 1475) is a renowned food company in Hong Kong and the PRC with a diversified portfolio of well-known and highly popular brands and the largest instant noodle company in Hong Kong. The Group officially established its presence in Hong Kong in 1984. The Group primarily manufactures and sells instant noodles, frozen foods and other food products under its two core corporate brands, namely "NISSIN" and "DOLL" together with a diversified portfolio of iconic household premium food 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 PRC market, the Group has introduced technology innovation through the "ECO Cup" concept into the market and primarily focuses its sales efforts in first-and second-tier cities located in the eastern and southern parts of the PRC.
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. For more information, please visit www.nissingroup.com.hk.
For media enquiries:
Nissin Foods Company Limited
Public Relations Department
Blanche Wong / June Lau
Email: pr@nissinfoods.com.hk
For investor enquiries:
Nissin Foods Company Limited
Investor Relations Department
Shingo Yamazaki / Peter Kwok
Email: ir@nissinfoods.com.hk
Strategic Financial Relations Limited
Vicky Lee Tel: (852) 2864 4834 Email: vicky.lee@sprg.com.hk
Carven Tsui Tel: (852) 2864 4859 Email: carvensm.tsui@sprg.com.hk
Cara Lau Tel: (852) 2864 4890 Email: cara.lau@sprg.com.hk
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