Snacks and noodle maker Monde Nissin Corp. reported Thursday core net income attributable to shareholders for the first quarter climbed 53.4 percent to P2.9 billion on the back of stronger performance of its food and beverage unit.
Monde Nissin said in a stock exchange disclosure its reported net income in the first quarter also grew 79.9 percent to P3.5 billion, mainly due to the fair value gain on guaranty asset, foreign exchange gain and interest income.
Consolidated revenues increased 2.1 percent to P20.3 billion on a comparable basis despite fewer selling days in Asia-Pacific branded food and beverage (APAC BFB) due to the timing of the Holy Week holiday in the Philippines.
“The first quarter saw significant expansion in gross margin and overall profitability driven by our APAC BFB business. This was despite top line growth being moderated during the quarter, partially due to the timing of the Holy Week holiday here in the Philippines,” said Monde Nissin chief executive Henry Soesanto.
Gross profit grew 20.9 percent to P7.2 billion, while gross margin improved by 553 basis points year-on-year on a comparable basis to 35.4 percent due to lower commodity costs and pricing in the APAC BFB business, tempered by the decline in gross margin from its alternative meat business.
APAC BFB’s net sales in the first quarter went up 2.2 percent to P16.9 billion. The sales from domestic business alone improved 2 percent year year-on-year to P15.8 billion.
“Our APAC BFB margins and profitability have substantially rebounded from last year’s levels, and we believe, given current conditions, that the second quarter will continue to reflect these improvements,” Seosanto said.
Monde Nissin’s meat alternative business under Quorn Foods, recorded a 4-percent decline in sales to P3.4 billion due to the continued weak demand.
Monde Nissin said the United Kingdom sales declined 2.8 percent due to the challenging retail market.
Seosanto said that for Quorn Foods, the company “will remain vigilant in minimizing costs and looking for efficiencies with the goal of remaining EBITDA flat or better for the year.”
