LISTED food and beverage manufacturer Monde Nissin Corp. recorded a 13.8% decline in its attributable net income to P1.99 billion from P2.3 billion a year ago due to restructuring costs and foreign exchange loss.
“Reported net income declined by 13.8% to P2 billion in the third quarter due to an impairment loss and restructuring costs in the meat alternative business, and foreign exchange loss, partially offset by a non-cash accounting gain of P495 million on the fair value of meat alternative guaranty asset,” Monde Nissin said in a regulatory filing on Thursday.
July-to-September revenue increased by 3.4% to P21.01 billion from P20.45 billion in 2023.
Revenue from the Asia-Pacific Branded Food and Beverage (APAC BFB) grew by 5.1% to P16.85 billion, while the meat alternative business saw an 8.3% decline to P3.3 billion.
“The APAC BFB business saw solid top line growth year on year in the third quarter, supported by volume growth in biscuits and other categories. Our third-quarter APAC BFB gross margin improved year over year and we expect this to continue in the fourth quarter,” Monde Nissin Chief Executive Officer (CEO) Henry Soesanto said.
For the first nine months, Monde Nissin grew its attributable net income by 5% to P6.08 billion from P5.79 billion last year.
The company increased its revenue by 3.2% to P61.15 billion from P59.65 billion in 2023.
Revenue from the APAC BFB segment recorded a 4.3% increase in net sales to P51.05 billion, while the meat alternative segment saw a 5.6% decline to P10.1 billion.
“Given the continued challenges in the meat alternative business, we plan to streamline costs and simplify operations through a restructuring and business transformation that will affect all parts of the organization,” Mr. Soesanto said.
“We are targeting our meat alternative business to be earnings before interest, taxes, depreciation, and amortization positive in 2025 with a total cash savings of GBP 8 million in 2024 and 2025, and we expect recurring annual cash savings of GBP 8 million,” he added.
Monde Nissin also announced that David Flochel will become the CEO of the meat alternative business at Marlow Foods, Inc. effective Jan. 1 next year as it undergoes a restructuring and business transformation.
On Thursday, Monde Nissin shares fell by 2.94%, or 32 centavos, to P10.56 per share. — Revin Mikhael D. Ochave