Monde Nissin core income dips to P7.2 billion

MANILA, Philippines — Snack food giant Monde Nissin Corp. registered a 3.5-percent dip in its core net income attributable to shareholders to P7.2 billion in the nine months ending September.

Attributable core net income in the third quarter alone, however, saw a 4.6 percent year-on-year improvement to P2.5 billion on the back of higher gross profit and lower operating costs in the meat alternative business.

Monde Nissin said the improvement during the quarter was further supported by a foreign exchange gain, compared to a foreign exchange loss in the same period last year.

Consolidated revenue from January to September improved by 3.5 percent to P63.3 billion, while third quarter revenues grew by 3.8 percent year-on-year to P21.8 billion.

Fueled by volume growth in biscuits and other categories, Asia-Pacific branded food and beverage (APAC BFB) net sales for the nine-month period went up by 4.4 percent to P53.3 billion, with the domestic business posting a 5.2-percent increase.

“Our APAC BFB business delivered modest topline growth in the third quarter, supported by volume growth in biscuits and other categories,” Monde Nissin CEO Henry Soesanto said.

“Our strong start to October, with record domestic sales, is encouraging. However, we remain cautious given the uncertainties ahead in the fourth quarter,” he said.

Soesanto said that while higher edible oil costs continue to put pressure on the gross margins, the company is beginning to see the benefits of its pricing adjustments and cost-saving initiatives, such as reformulation.

“We expect these efforts to drive gradual gross margin recovery in the succeeding quarters, though full-year gross margin is still expected to be lower than last year,” he said.

Revenue of Monde Nissin’s meat alternative business, meanwhile, declined by 3.9 percent for the nine-month period and by 1.1 percent in the third quarter on a constant currency basis.

“We are encouraged by the continued easing of year-on-year declines and the significant gross margin improvement this quarter, which expanded by over 500 basis points year-on-year. We remain on track to achieve our topline and EBITDA guidance for the full year,” Soesanto said regarding the meat alternative business.

“While category conditions remain challenging, the improvement in EBITDA demonstrates that our initiatives are making steady progress. We will continue to focus on driving efficiency and supporting a gradual recovery as we navigate the current market environment,” he said.