Japan’s Nissin Foods Holdings is establishing a subsidiary in Turkey dedicated to noodle manufacturing.
The Tokyo-based producer of Soba and Cup Noodles brands is investing Tl1.59bn ($38.1m) in this initiative.
In a statement released today (1 October) by president and CEO Koki Ando, Nissin Foods announced its agreement to acquire a factory in Turkey from pasta manufacturer Oba Makarnacılık Sanayi ve Ticaret.
The acquisition encompasses the facility in Sakarya province, along with production equipment and other fixed assets.
Nissin Foods emphasized that this new Turkish venture represents the company’s “strategic re-entry” into the market, citing strong growth opportunities.
Moreover, Nissin Foods aims to enhance the sales of instant noodles within Turkey while looking to expand into neighboring regions including Central Asia, the Middle East, and North Africa.
This initiative aligns with Nissin Foods’ mid-to-long-term strategy through 2030, which the company laid out in 2021, targeting approximately 45% of its core operating profit from international markets.
The company stated, “Having already achieved this goal, we are committed to further strengthening our focus on international growth.”
Nissin Foods recorded Y776.5bn ($5.2bn) in sales for the fiscal year ending 31 March, marking a 6% increase from the previous year.
Sales figures included Y482bn from Japan, Y168.6bn from the Americas (predominantly the US and Brazil), and Y126bn from other regions.
Consequently, the group’s core operating profit across all regions rose by 3.6% to Y83.6bn, while operating profit increased by 1.4% to Y74.4bn.
Profit attributable to shareholders also climbed by 1.6% to Y55bn.
However, Nissin Foods has experienced a challenging start to its new fiscal year, with key metrics indicating a downturn in the first quarter.
The company’s results released in August revealed a sales decline of 4.3%, amounting to Y177bn.
Core operating profit decreased by 25.5% to Y17.4bn, and operating profit fell by 27.5% to Y15.8bn.
Net income attributable to shareholders declined by 29.3%, reaching Y11.2bn.
Nissin Foods Co., the Hong Kong-listed segment of Nissin Foods Holdings, expanded in Australia last year through the acquisition of ABC Pastry, a frozen dumplings manufacturer.
At that time, Nissin Foods Co. indicated that the acquisition was “a premium opportunity for the group to tap into the Australian frozen food market.”
Additionally, they secured another deal in South Korea, acquiring Gaemi Food, a producer of baked grains crispy rolls.
