NISSIN FOOD PRODUCTS CO., LTD. achieved higher sales of bag-type instant noodle products Nissin Ra-O (non-fried, fresh bag-type noodles) and Nissin-no-Donbei, products made by applying new technologies cultivated in cup-type instant noodles. In addition, a number of cup-type instant noodle products sold briskly, including the Cup Noodle Light series, which proposed a new way of eating noodles in summer by adding ice, the Cup Noodle King series, which satisfies hearty appetites with the largest portion in Cup Noodle history, and the Nissin-no-Donbei series, popular for its chewy, thick, straight udon-style noodles made using our triple-layer thick, straight noodle preparation process. In March 2013, we began nationwide sales of Nissin Ra-O bag-type noodles and renewed the Cup Noodle Gohan series, simplifying preparation and making the price more affordable. As a result, net sales in this segment rose 0.8% to ¥200,841 million (US$2,135 million), and operating income rose 1.5% to ¥23,810 million (US$253 million).
MYOJO FOODS CO., LTD. struggled in fierce sales competition with competitors for bag-type noodles including MYOJO CHARUMERA. In the results for cup-type instant noodles, higher sales of an addition to the MYOJO IPPEICHAN series launched as a collaborative product with a popular animation series and the MYOJO HYOBANYA series of open-price products failed to compensate for declines in sales of other products. As a result, net sales in this segment fell 6.4% to ¥39,336 million (US$418 million), and operating income fell 37.8% to ¥1,713 million (US$18 million).
NISSIN CHILLED FOODS CO., LTD. faced adverse selling conditions and was unable to counter stagnant demand in the chilled noodles market. Despite strong sales of Nissin-no-Chanpon and Nissin No Futomen Yakisoba, products that offer flavor found only in chilled noodles, overall sales decreased from the previous fiscal year. NISSIN FROZEN FOODS CO., LTD. enjoyed strong sales of spaghetti products such as the Reito Nissin Spa-O Premium series and Reito Mochitto Nama Pasta series and achieved a sales increase for Reito Nissin Capsule-Style Cup Noodle Onigiri, a new offering for the frozen rice ball market. Income was down year on year due to soaring raw materials prices and higher selling expenses. As a result, net sales of chilled and frozen foods fell 1.6% year on year to ¥52,565 million (US$559 million), while operating income fell 47.7% to ¥819 million (US$9 million).
Although NISSIN CISCO CO., LTD. and NISSIN YORK CO., LTD. posted excellent business results, stagnation in the food service business was a drag on overall performance in this category. As a result, although sales increased, income fell year on year.
In China (including Hong Kong), both sales and income increased as a result of sales network expansion and brand strategy success in China, where the middle class continues to grow. Sales of Cup Noodles products such as Hap Mei Do and Kai Bei Le rose sharply, primarily in urban areas, and Demae Iccho also sold well. As a result, regional net sales increased by 11.5% year on year to ¥20,848 million (US$222 million), and operating income increased by 76.1% to ¥1,836 million (US$20 million).
In the Americas, we worked to enhance new product lines with the aim of making the business operation less susceptible to price competition. Sales of Big Cup Noodles, a line targeted for development into a future mainstay product, were strong thanks to the introduction of new flavors to boost sales. Sales of Top Ramen, Cup Noodles and other long-selling products were also robust. Regional net sales increased by 6.1% year on year to ¥25,917 million (US$276 million), and operating income was ¥236 million (US$3 million), a turnaround from an operating loss the previous fiscal year.
Although in fiscal 2013 sales and profits in Asia fell as a result of intensified competition in India, we will implement a new growth strategy for fiscal 2014 and beyond. Sales and operating income in Europe were at roughly the levels of the previous year.
Total demand in Asia (excluding Japan and China) in the calendar 2012 was 36.77 billion servings, accounting for 36% of total worldwide demand of 101.40 billion servings. For this reason, in April 2012 we established the Regional Headquarters of Asia (RHQ-Asia) in Singapore to support overseas subsidiaries in devising and implementing strategies. RHQ-Asia provides exhaustive support from a location closer to the market culturally and geographically. For a while longer, we will continue to make upfront investment with the principal aim of accelerating business development.
The Company established a new subsidiary in Vietnam and seeks penetration of the NISSIN brand of non-fried bag-type noodles. We built new plants in India and Thailand.
The latest news is our expansion into Turkey, a new market for instant noodles: The Company launched NISSIN YILDIZ GIDA SANAYI VE TICARET A.S., a joint venture company in partnership with a pasta company of YILDIZ HOLDING A.S., and plans to launch an instant noodle business to complement the existing pasta business.