Nissin Foods' Profit Rises Despite Middle East Cost Pressures

Nissin Foods Holdings reported a 9.5% year-over-year increase in sales revenue for the first half of fiscal 2027, reaching ¥408.739 billion, despite facing headwinds from escalating costs linked to the ongoing geopolitical situation in the Middle East.

The company’s core operating profit for existing businesses rose 4.9% to ¥36.5 billion, driven by price adjustments and cost-cutting measures. However, profit attributable to owners of the parent company fell 2.5% year-over-year to ¥22.04 billion, indicating margin pressure even with increased revenue. Nissin Foods anticipates the total impact of Middle East-related costs to reach approximately ¥17 billion for the full fiscal year.

The positive results were fueled by strong performance across multiple segments. Domestic instant noodle sales increased, benefiting from price revisions and popular brands like Cup Noodle. The company’s domestic non-instant noodle business also saw growth, boosted by the consolidation of Ceria Retail and robust sales of its chilled and frozen food products. Overseas operations benefited from previous price increases and solid contributions from Brazil and China.

Nissin Foods is strategically focusing on its “Prime” businesses – domestic instant noodles, South American markets, and China – to maximize cash flow. Simultaneously, the company is investing in its “BOLD” series in North America, Brazil, and Europe to build new global brands. Despite the challenges posed by the Middle East situation, Nissin Foods aims to achieve its initial full-year forecast of ¥735 billion in core operating profit for existing businesses through continued strategic initiatives and cost management.