Nissin Foods

-0.52%

Food safety issues: Product reputation could be unfavorably affected if unanticipated and unusual health-related situations were to arise in the future, or could be impacted by food safety problems occurring overseas.

Risk derived from changes in demographic trends: Overall demand in the instant noodle market would shrink due to the declining birthrate, aging population, and declining population in Japan.

Risk of decline in brand value: The relative brand value of the Company’s products could decline if another company were to achieve a revolutionary breakthrough in instant noodle development.

Risk of product liability: In the event of a product liability accident, a product recall that cannot be covered by insurance could incur additional reparation costs.

Risk of increases in prices of raw materials: Material prices could increase significantly due to factors such as political unrest or international disputes occurring in the countries that produce raw materials and crop failures caused by abnormal weather associated with global warming.

Risk of declining market values on marketable securities: Worsening market conditions that cause market values to decline or a sluggish performance by equity investments could cause impairment losses.

Risk related to the accounting for impairment of fixed assets: Fixed assets could face a substantial decline in fair value and future cash flows.

Exchange rate fluctuations: The local financial statements in each region are translated to Japanese yen for the purpose of preparing consolidated financial statements. Hence, exchange rate fluctuations may have an effect on the Group’s consolidated results and financial position, even if there is no change in the value in local currencies.

1.Stagnation: There is always a possibility that the company may become stagnant as growth in its target markets may not keep pace with the global average.

2. Increased Competition: As more and more companies enter the plant-based food market, the company may face increased competition which could adversely affect its sales and profitability.

3. Limited Resources: Nissin Foods may find it difficult to expand its operations if it does not have adequate financial resources to do so.

4. Compliance: As the company expands its operations in different countries, it may need to comply with new regulations which can be time-consuming and expensive.

5. Consumer Rejection: There is also a risk of consumer rejection either because of the products’ taste, nutrition, or price. This could lead to lower sales and profits.