Financial Performance - In 2024, the Group's revenue was HK$3,811.9 million, remaining almost flat year-on-year despite challenges, with a notable 8.4% year-on-year sales growth in the fourth quarter driven by instant noodles[17][20]. - Gross profit increased by 0.7% year-on-year to HK$1,312.1 million, with the gross profit margin improving from 34.0% to 34.4%[18][21]. - Net profit attributable to shareholders decreased by 39.1% year-on-year, from HK$330.2 million to HK$201.0 million, resulting in a profit margin of 5.3%[18][21]. - Adjusted EBITDA, excluding one-off non-cash expenses, increased by 0.8% year-on-year to HK$612.5 million, indicating resilient core business performance[18][21]. - Revenue for FY2024 decreased by 0.6% to HK$3,811.9 million compared to HK$3,833.2 million in FY2023[87]. - Basic earnings per share decreased to 19.26 HK cents from 31.64 HK cents in FY2023[88]. - Adjusted EBITDA rose by 0.8% to HK$612.5 million, with an Adjusted EBITDA margin of 16.1%[89]. - The total dividend payout ratio for the year is 82.1%, compared to 50.0% in 2023[92]. Acquisitions and Joint Ventures - In June 2024, the Group acquired Gaemi Food Co. Ltd., a leading snack food manufacturer in Korea, enhancing its market presence[23]. - In September 2024, the Group acquired ABC Pastry Holdings Pty Ltd, a frozen dumpling manufacturer in Australia, to capitalize on the growing demand for Chinese gourmet foods[24]. - A joint venture agreement was established in November 2024 with Nissin Foods Asia Co., Ltd. to promote Nissin brand instant noodles in Australia and New Zealand[25]. - The company acquired 100% equity interest in Gaemi Food for KRW48,000 million (approximately HK$271.7 million), expanding its non-noodle business portfolio[137]. - The Company acquired 100% issued share capital in ABC Pastry for AU$33.7 million (approximately HK$178.6 million), with the acquisition completed on December 2, 2024[179]. Market Strategies and Product Development - The Group conducted a trial-tasting promotion campaign for Cup Noodles in major cities in Mainland China, featuring over 30,000 trial tastings[26]. - The Group developed the WeChat Mini program "Nissin Foodium" in Hong Kong to enhance customer loyalty and brand recognition through digital marketing initiatives[27]. - The company aims to strengthen partnerships with distributors in Mainland China to increase sales of Cup Noodles and high-end bag-type noodles, capitalizing on the rising demand for authentic flavors[35]. - The distribution business has begun launching new products and brands, with a focus on expanding sales channels[36]. - In Hong Kong, the company is focusing on expanding sales of high-end bag-type noodles and premium frozen foods, including dim sum and pasta[37]. - The company plans to enhance sales of frozen dumplings in Australia to meet consumer demand and increase market share[41]. - The Company launched various new products in its non-noodle portfolio, including seasonal items and new flavors in the low-fat yogurt series[131]. Economic and Market Conditions - The company believes that steady economic growth will eventually return to both Mainland China and Hong Kong despite current market challenges[34]. - Consumer sentiment in Mainland China is expected to remain weak, with industry competition anticipated to remain intense, slowing the growth of complementary businesses[96]. - The Hong Kong economy recorded a moderate year-on-year growth of 2.5% in 2024, with visitor arrivals reaching 42.6 million, representing a year-on-year growth of 8.3%[118][122]. - Total retail sales value in Hong Kong declined by 7.3% year-on-year, primarily due to local consumers spending in the Greater Bay Area and a strengthening Hong Kong dollar[119][122]. - The retail industry in Vietnam is experiencing remarkable growth, driven by favorable economic conditions and changing consumer behavior, with a focus on healthy, high-quality products[171]. Impairment and Financial Adjustments - Total impairment losses amounted to HK$135.9 million, including HK$77.1 million on property, plant, and equipment related to complementary businesses in Mainland China and Hong Kong[93]. - The Group recognized an impairment loss of HK$6.8 million on property, plant, and equipment, and HK$7.9 million on right-of-use assets due to carrying amounts exceeding recoverable amounts[107]. - The Company confirmed goodwill impairment losses of approximately HK$22.7 million and customer relationship intangible asset impairment losses of approximately HK$12.5 million, totaling HK$35.2 million[121]. - The management revised downwards the sales forecasts for Shanghai Eastpeak for the five business years ending December 31, 2029, based on prudence and conservatism principles[116]. Operational Highlights - The Group's total assets amounted to HK$4,756.6 million, an increase from HK$4,683.7 million in 2023, while total equity was HK$3,670.0 million, slightly down from HK$3,674.7 million[157]. - The Group's working capital decreased to HK$1,477.2 million from HK$1,608.0 million in 2023, with a current ratio of 2.6 compared to 2.8 in the previous year[157]. - Capital expenditure for the year was approximately HK$570.4 million, significantly higher than HK$329.6 million in 2023, primarily due to acquisitions and investments in production plants[159]. - The Group had no external borrowing, maintaining a gearing ratio of nil as of December 31, 2024[158]. - As of December 31, 2024, the total number of staff increased to 3,737 from 3,409 in 2023, with staff costs amounting to approximately HK$733.6 million[186][188].
日清食品(01475) - 2024 - 年度财报