Membership Program and Consumer Engagement - Nissin Foods has launched its first-ever membership program "Nissin Foodium" in Hong Kong and Mainland China, which includes exclusive benefits and an e-commerce platform[5]. - The membership program allows direct communication with consumers to better understand their preferences and changing consumption trends[5]. - The company maintains a focus on enhancing customer experience through interactive platforms and rewards[5]. Innovation and Product Development - The company emphasizes continuous investment in research and product development to enhance food quality and safety, ensuring sustainable growth[4]. - Nissin Foods is committed to innovation and learning, continuously adapting to market demands[6]. - The company aims to contribute to society by providing high-quality food and enhancing the pleasure of eating[4]. Financial Performance - Revenue decreased by 6.1% to HK$1,929.3 million for the first half of 2023, down from HK$2,055.2 million in the previous year[18]. - Gross profit increased by 1.9% to HK$658.3 million, resulting in a gross profit margin of 34.1%, up from 31.4% in 2022[18]. - Profit attributable to owners of the Company rose by 6.4% to HK$171.7 million, with a net profit margin of 8.9% compared to 7.9% in the previous year[19]. - Basic earnings per share increased to 16.45 HK cents, up from 15.46 HK cents in 2022[19]. - Adjusted EBITDA decreased by 3.3% to HK$295.9 million, with an Adjusted EBITDA margin of 15.3% for the period[21]. Market Conditions and Consumer Trends - The Hong Kong economy showed a year-on-year GDP growth of 2.9% in Q1 and 1.5% in Q2 of 2023, with total retail sales increasing by 20.7%[23]. - Supermarket retail sales value dropped by 7.8% over six consecutive months, impacted by consumer preferences for dining out and "revenge travel" post-pandemic[24]. - The performance of both cup-type and bag-type instant noodles was mediocre as consumers favored eating out and "revenge travel" during the review period[27]. Strategic Acquisitions and Expansion - The Company acquired 66.01% of Nissin Foods Vietnam Co., Ltd. and made a capital contribution of USD 2 million following the acquisition[17]. - The acquisition of Nissin Vietnam allows for greater flexibility in responding to increasing market demand in the region[32]. - The Group can leverage resources and expertise from Hong Kong and Mainland China to accelerate Nissin Vietnam's business growth[32]. Operational Efficiency and Cost Management - The increase in gross profit margin was mainly due to price adjustments in Hong Kong and Mainland China to offset rising manufacturing costs[18]. - The Company is committed to continuous product upgrades and cost optimization to enhance consumer experience amid challenging market conditions[18]. - The company is implementing automated and smart technology at its production plants to enhance operational efficiency and product quality[45]. Staff and Management Changes - Nissin Foods has appointed new senior management members as of July 1, 2023, to strengthen its leadership team[9]. - The Group's total staff increased to 3,608 as of June 30, 2023, with staff costs amounting to approximately HK$360.4 million for the period[50]. Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code throughout the six months ended June 30, 2023, except for the separation of the roles of Chairman and CEO[54]. - The Company has established an Audit Committee to oversee financial reporting, risk management, and internal controls[58]. Future Outlook and Guidance - The company plans to focus on market expansion and new product development in the upcoming quarters[86]. - Future guidance indicates a cautious outlook due to market volatility and economic conditions[86]. - The company is exploring potential mergers and acquisitions to enhance its market position[86].
日清食品(01475) - 2023 - 中期财报