MONDE NISSIN CORP. posted a 13.4% yearly increase in third-quarter net income to P2.3 billion, supported by foreign exchange gains and steady growth in its core branded food business despite continued pressure from its meat alternative segment and rising edible oil costs.
In a stock exchange filing on Thursday, the listed food and beverage manufacturer said the profit figure was partially offset by a noncash loss of P285 million from the fair value adjustment of its meat alternative guaranty asset.
Consolidated revenue rose 3.8% to P21.8 billion, while gross income slipped 2.4% to P7.24 billion. Core attributable net income increased 4.6% to P2.5 billion.
“The improvement was further supported by a foreign exchange gain, compared with a foreign exchange loss in the same period last year,” Monde Nissin said.
The Asia-Pacific branded food and beverage segment posted a 4% rise in net sales to P18.42 billion, driven by stronger biscuit sales and other product categories.
“Our Asia-Pacific branded food and beverage business delivered modest topline growth in the third quarter, supported by volume growth in biscuits and other categories,” Monde Nissin Chief Executive Officer Henry Soesanto said.
Meanwhile, meat alternative sales under Quorn Foods inched up 2.5% to P3.39 billion in the July-to-September period, while gross margin expanded by more than 500 basis points year on year due to lower input costs and efficiency gains.
“We are encouraged by the continued easing of year-on-year declines and the significant gross margin improvement this quarter,” Mr. Soesanto said.
For the nine months to September, Monde Nissin’s reported net income rose 9.6% to P6.7 billion, while consolidated revenue grew 3.5% to P63.3 billion. Gross profit slipped 1.5% to P21.04 billion, and core attributable net income fell 3.5% to P7.19 billion.
Net sales from the meat alternative business declined 1.2% to P9.98 billion.
“While higher edible oil costs continue to put pressure on our gross margins, we are beginning to see the benefits of our pricing adjustments and cost-saving initiatives, such as reformulation,” Mr. Soesanto said.
He added that the company expects gradual gross margin recovery in the coming quarters, although the full-year margin will remain lower than last year.
Monde Nissin shares fell 4.55% or 30 centavos to P6.30 each on the local bourse. — Beatriz Marie D. Cruz