MONDE Nissin Corp. reported that its core net income attributable to shareholders declined 13.5% to P2.1 billion for the first quarter due to continuing commodity price increases.
Quarterly reported net income likewise decreased by 0.9% to P2.3 billion despite lower interest costs.
Consolidated revenues increased by 7.2% to P18.3 billion due to the strong performance of the Asia-Pacific branded food and beverage (APAC BFB) domestic business.
Core earnings before interest, taxes, depreciation, and amortization (EBITDA) declined by 9.9% to P3.6 billion due partly to the company’s continued strategic investments in brand and new product development during the quarter.
APAC BFB net sales for the first quarter increased by 8.6% to P14.5 billion due to the improving performance of the domestic business, which grew 10.5% to P13.7 billion on price increases and continued volume growth for the noodles, culinary, and packaged cake categories.
However, the international business declined 15.4% to P854 million due to shipping constraints during the quarter.
Monde Nissin’s meat alternative business, Quorn Foods, posted a 1.3% revenue decline on an organic basis as the UK grocery market remains in decline and as the country continues to experience challenging macroeconomic conditions.
“While we had a strong start to the year and remain optimistic about the continuation of the growth we are seeing, commodity inflation remains a concern for our APAC BFB business and it is something that we will proactively respond to as the year progresses,” Monde Nissin Chief Executive Officer Henry Soesanto said.
“We are working hard to continually improve our efficiency and being mindful of our consumers when price increases become warranted, striving to maintain our growth momentum and recovering margin where possible,” he added.
On the meat alternative business, he said although the retail environment remains challenging, “our market share continues to be stable.”
“Our food service segment is also showing sustained momentum as it posted its best-ever quarter. We will leverage on these encouraging signs and work towards overcoming the short-term challenge,” Mr. Soesanto said.
At the stock exchange, Monde Nissin shares dropped by 0.45% or P0.06 to P13.34 on Wednesday. — Luisa Maria Jacinta C. Jocson