Financial Performance - The Group's revenue decreased by 5.8% year-on-year due to declining consumer sentiment and the absence of extra demand for bag-type noodles caused by the pandemic[15]. - Operating profit increased by 2.2% year-on-year, with an operating profit margin improvement of 0.9 percentage points to 11.4% due to lower raw material prices and reduced SG&A expenses[15]. - Net profit attributable to owners of the Company increased by 5.6%, with a net profit margin improvement of 0.9 percentage points to 8.6%[15]. - The company's revenue decreased by 5.8% year-on-year due to a decline in consumer sentiment towards instant noodles and the impact of the weaker Renminbi[33]. - Operating profit increased by 2.2% year-on-year, with an operating profit margin of 11.4%, improving by 0.9 percentage points compared to the previous year[33]. - Net profit attributable to shareholders increased by 5.6% year-on-year, with a profit margin of 8.7%, also improving by 0.9 percentage points[33]. - The company has achieved seven consecutive years of profit growth since its listing[33]. - Revenue decreased by 5.8% to HK$3,833.2 million in FY2023, down from HK$4,067.7 million in FY2022[60]. - Gross profit remained flat at HK$1,303.1 million, with a gross profit margin increase to 34.0% from 32.0%[60]. - Profit attributable to owners of the Company increased by 5.6% to HK$330.2 million, resulting in a net profit margin of 8.6%[62]. - Basic earnings per share rose to 31.64 HK cents, compared to 29.96 HK cents in the previous year[62]. - The final dividend per share proposed is 15.82 HK cents, up from 15.16 HK cents in FY2022, with a dividend payout ratio of 50.0%[62]. - Adjusted EBITDA increased by 0.4% to HK$607.8 million, with an Adjusted EBITDA margin of 15.9% for the year[63]. Market Expansion and Product Development - The membership program "Nissin Foodium" has expanded its target products and registered members are growing monthly, enhancing customer loyalty[16]. - In 2023, Nissin launched Nissin Chicken Ramen and Japanese formula Cup Noodles in Hong Kong and Mainland China, enhancing product offerings[19]. - The R&D team is focusing on developing plant-based meat alternatives, which are environmentally friendly and increasingly demanded by health-conscious consumers[20]. - The company aims to increase instant noodle shipment volumes to Mainland China and other regions by leveraging sales and management expertise developed in Hong Kong and Mainland China[22][25]. - The company plans to expand sales of premium bag-type noodles and Cup Noodles in Mainland China while increasing its geographical sales network[28]. - In the Hong Kong market, the focus will be on expanding sales of Demae Iccho, Nissin Raoh, and Nissin Chicken Ramen, along with premium frozen ramen and dim sum products[28]. - The company aims to diversify its product portfolio to include non-noodle products, responding to rising health awareness among consumers[91]. - The Company launched rice noodles and plant-meat products to cater to growing consumer demand for healthy options[69]. - Focus on premium frozen food products was intensified, with new product launches including Nissin Frozen Tempura Udon and Nissin Black Pepper Flavour Fried Dumpling[70]. - New product launches in 2023 include Nissin Chicken Ramen and Japanese Formula Cup Noodles, which have been well received by consumers[35]. Acquisitions and Investments - The company acquired approximately 66% stake in Nissin Vietnam in June 2023, making it a consolidated subsidiary and expanding its business scope from Greater China to Vietnam[22][25]. - A wholly-owned subsidiary was established in Taiwan in December 2023 to enhance product sales, transitioning from local wholesalers to direct trading activities[22][25]. - The acquisition of 66.01% of Nissin Vietnam contributed positively to profitability and was part of a capital transfer agreement[59]. - The Company completed the acquisition of Nissin Vietnam for approximately USD 11.5 million, gaining a 67% stake[75]. - The company acquired the remaining 19% shareholding interest in Hong Kong Eastpeak Limited, making it a wholly-owned subsidiary as of July 3, 2023[82]. Sustainability and Corporate Responsibility - The company received an ESG rating of A from MSCI in 2023, reflecting its commitment to sustainable management and corporate social responsibility[26][27]. - The company is committed to sustainability, with plans to reduce carbon emissions by 25% by 2025[125]. - The management highlighted the importance of food safety and environmental measures, including the installation of solar panels in production facilities[58]. - The company is committed to maximizing business outcomes and creating long-term value for stakeholders while contributing to local community sustainable growth[30][31]. Operational Efficiency and Technology - Investment in production facilities includes the relocation of instant noodle production lines and the implementation of Smart Factory technologies to improve efficiency and reduce costs[21]. - The company has implemented automation and information technology in its production lines to enhance efficiency, safety, and product quality[24]. - The Group remains committed to continuous product upgrades and cost optimization amid challenging market conditions[58]. - The company has established partnerships with local suppliers to improve sourcing efficiency and reduce costs by 8%[125]. Management and Governance - The Group has a strong management team with over 32 years of experience in finance and accounting, led by Chief Financial Officer Mr. Shinji Tatsutani[133]. - The Board of Directors includes professionals with diverse backgrounds in finance, academia, and industry, enhancing strategic decision-making[134][135]. - The company has maintained good corporate governance practices, complying with the CG Code except for the separation of the roles of chairman and CEO, which are currently held by Mr. Kiyotaka Ando since 2009[151]. - The Board has established three committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, to delegate various responsibilities and ensure effective governance[189]. - The Board has maintained a balance of skills and experience, contributing to effective direction and safeguarding shareholder interests[163]. - The Company has mechanisms in place to ensure Board independence, including annual assessments and external professional advice availability[159]. Employee and Gender Diversity - As of December 31, 2023, the total number of employees was 3,409, with staff costs amounting to approximately HK$ 705.5 million for the year[100]. - The Group's total workforce gender diversity ratio is approximately 0.9:1.0 male to female[173]. - The gender diversity ratio for senior management is at 4.5:1.0 male to female[173]. - The Company aims to maintain a diverse Board composition by considering factors such as professional experience, skills, knowledge, gender, age, and cultural background[168]. - The Company has taken steps to promote gender diversity at all levels, including the Board and senior management[172].
日清食品(01475) - 2023 - 年度财报