Monde Nissin income drops in Q1

Monde nissin Corp. said its attributable core income in the first quarter fell 13 percent to P2.12 billion from last year’s P2.45 billion, despite posting a single-digit sales growth.

In its disclosure, the company said revenues rose 7 percent to P18.29 billion for the first quarter from last year’s P17.07 billion on the strong performance of its Asia Pacific branded food and beverage business.

First quarter gross margin showed a recovery of 150 basis points from the previous quarter due to pricing actions and volume growth. on an annual basis, however, gross margin was 35.1 percent lower as input costs continue to rise.

The company’s reported net income reached P2.3 billion, flat compared to last year as interest expense was lower due mainly to the repayment of the Arran convertible note and bank loans in 2021.

Monde nissin said sales of its Asia Pacific branded business grew 8 percent to P14.5 billion due to the improving performance of the domestic business, which grew 10 percent to P13.7 billion on price increases and continued volume growth for the noodles, culinary, and packaged cake categories. Biscuits also posted volume growth to pre-pandemic level.

Meanwhile, the international business declined 15 percent to P854 million due mainly to shipping constraints during the quarter.

“While we had a strong start to the year and remain optimistic about the continuation of the growth we are seeing, commodity inf lation remains a concern for our APAC BFB [Asia Pacific branded food and beverage] business and it is something that we will proactively respond to as the year progresses,” Henry Soesanto, the company’s Ceo, said.

“As for our meat alternative business, while the retail environment remains challenging, our market share continues to be stable. our foodservice 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 shortterm challenges.”

Revenues of the meat alternative business under the Quorn brand fell 1 percent on an organic basis as the

United Kingdom grocery market remains in decline and as the country continues to experience challenging macroeconomic conditions.

on a reported basis, revenue increased by 2 percent to P3.76 billion due to foreign exchange gains. Retail sales posted a decline year-on-year as the market rebalances to outof-home consumption. Meanwhile, foodservice delivered a record quarter and grew by more than 100%.

Price increases in the UK resulted in gross margin recovering to 38 percent in the first quarter from 32.6 percent in the fourth quarter of 2021, despite increased inflation from recent geopolitical situations. Year-on-year, gross margin decreased by 300 basis points.