DEAR SHAREHOLDERS,
On behalf of the board of directors (“the Board”) of Nissin Foods Company Limited (the “Company”), I am delighted to present the Annual Report of the Company and its subsidiaries (the “Group”) for the year ended 31 December 2019.
The Group achieved an outstanding performance in 2019. In particular, the revenue for PRC operation (recorded in RMB basis) achieved a double-digit growth for the second consecutive year while profit attributable to owners of the company increased by 22.2% over that of the last fiscal year. Although continuous social unrest in Hong Kong and trade friction between China and United States negatively impacted general business condition, consumption upgrade in the PRC remained unchanged thus benefiting the Group’s sale. Against the backdrop favourable to the Group, we have delivered unique, innovative and diversified products, including Cup Noodles (合味道) and Demae Iccho (出前一丁) through expanded distribution channels and business territories so as to provide added values and delights to our stakeholders including customers and shareholders.
I anticipate the spread of novel coronavirus globally is likely to dampen the economic situation in 2020. However, the Group continues to invest in talents and businesses, promote localisation in business and management, strengthen the competitiveness, and aim for sustainable profit growth. The Group will endeavour to maintain and improve the confidence and trust of shareholders at the same time.
Lastly, with our top managements and employees, I share the beliefs of our founder, Mr. Momofuku Ando, which are also our management philosophies, being “Peace will come to the world when there’s enough food (『食足世平』)”, “Create foods to serve society (『食創為世』)”, “Eat wisely for beauty and health (『美健賢食』)”, and “Food related jobs are sacred profession (『食為聖職』)”. Based on these beliefs, the Group is also fully committed to ensuring stable food supply to the society even under challenging situation.
HOW WE WANT TO CHANGE THE SOCIETY AND COMMUNITY?
We wish to further integrate Nissin brand instant noodles and other products into our customers’ food habit and culture in Hong Kong and China.
To meet the growing expectation and needs of customers, we strive to keep up with the evolving market and the changing tastes and preference of consumers. Despite constant change in our economy, we will continue to work steadily with complete dedication to ensure excellent food safety and deliver high quality offering in order to give our customers peace of mind. At the same time, we will introduce new joyful delights and surprises to enrich our customers’ lives. In delivering these core values through our product offerings, we are confident that our revenue and margin will continue to improve.
ACTION PLAN
In the core business, the Group will continue to evolve instant noodles products by developing new innovative products and enhancing the quality of instant noodles in order to convey new instant noodles offerings to customers. Also, we will continuously facilitate in-house production thereby further lower the cost of sales.
The non-instant noodle business, including granola products, Kagome brand products, potato chips and others, will contribute to business performance as the second pillar of the Group’s business, sharing the Group’s shared service platform and distribution network with core business. We will further reinforce sales in granola products, Kagome brand fruit and vegetable juices products and others.
Kiyotaka Ando
Chairman
