At a time of instability following the Great East Japan Earthquake of March 2011, NISSIN FOOD PRODUCTS CO., LTD. mounted an all-out effort to supply its main product lines, the Cup Noodle series and Nissin-no-Donbei series, as emergency food products. In other developments, the year ended March 31, 2012 marked the 40th anniversary of the launch of the Cup Noodle series, and cumulative sales since the introduction passed the 20 billion-serving milestone. Although MYOJO FOODS CO., LTD. enjoyed brisk sales throughout the year of its mainstay brand, the MYOJO CHARUMERA series, net sales decreased year on year on lower sales of open-price products. As a result, NISSIN FOOD PRODUCTS'net sales of instant noodles increased 1.6% year on year to ¥199,284 million (U.S.$2,425 million), while operating income fell 9.9% to ¥20,517 million (U.S.$250 million) as a result of soaring raw materials prices and an increase in depreciation and amortization. MYOJO FOODS'net sales in this segment fell 1.3% to ¥42,005 million (U.S.$511 million), while operating income rose 13.4% to ¥2,753 million (U.S.$33 million) due to factors including control of advertising expenses.
NISSIN CHILLED FOODS CO., LTD. enjoyed favorable sales of the Gyoretsu-no-Dekiru-Mise-no-Ramen series, a long-selling brand in its 15th year. NISSIN FROZEN FOODS CO., LTD. achieved good sales results for the Reito Nissin Spa-O Premium series of mid-priced products popular among housewives as weekday lunch items and the Reito Nissin Spa-O Chef's Premium series of premium-priced and high-end authentic pasta products that consumers can enjoy at home.
As a result, net sales of chilled and frozen foods rose 4.1% year on year to ¥53,434 million (U.S.$650 million), while operating income fell 13.8% to ¥1,565 million (U.S.$19 million).
NISSIN CISCO CO., LTD. prepared for the 50th anniversary of the launch of Ciscorn next year by expanding the cornflakes production line at its Tokyo Plant (Kumagaya, Saitama Prefecture) and increased sales by implementing a brand extension of Sablé cookies. NISSIN YORK CO., LTD. acquired Pilkul Life Plus lactobacillus beverage, a staple item at convenience stores.
In China (including Hong Kong), Cup Noodles products such as Hap Mei Do and Kai Bei Le sold well. As a result, regional net sales increased by 1.7% year on year to ¥18,695 million (U.S.$227 million), despite the negative impact of foreign exchange rates. Operating income increased by 5.5% to ¥1,043 million (U.S.$13 million) despite soaring raw materials prices and higher selling expenses due to active sales promotion.
Although in the year ended March 31, 2012, Asia (excluding Japan and China) accounted for 35.9 billion servings, 36.6% of worldwide demand, the region's share of overseas sales was only 9%. For this reason, we have established the Regional Headquarters in Asia (RHQ-Asia) in Singapore to devise and execute strategies for overseas subsidiaries in Asia, weighing the opinions of local employees and monitoring the pulse of local markets. We will focus management resources on Asia and front-load investment to accelerate business development and achieve above-market growth in the region by commencing, in the year ahead, operation at plants in Vietnam, Thailand and India.
In the Americas, Top Ramen, Cup Noodles, Bowl Noodles and Big Cup Noodles, a new product, sold well. Nevertheless, regional net sales decreased by 7.6% year on year to ¥24,432 million (U.S.$297 million), due in part to the adverse effects of foreign exchange rates. Soaring prices of flour and other raw materials resulted in an operating loss of ¥341 million (U.S.$4 million).