Instant noodle maker Monde Nissin Corp. reported a net loss of P13 billion in 2022, a sharp turnaround from the P3.24-billion net income in 2021 after booking one-time impairment and restructuring costs for its meat alternative business.
Monde Nissin said it booked non-recurring net loss of P19.6 billion in 2022 primarily due to a non-cash, non-operating impairment of the intangible assets of Marlow Foods, which owns UK-based meat substitute producer Quorn Foods and Cauldron.
“The impairment was caused by the application of a higher discount rate due to the prevailing higher interest rates and risk premiums, some margin compression, and rationalization of the trend in the meat alternative category,” Monde Nissin chief executive Henry Soesanto said in a briefing.
“This impairment does not have any effect on the day-to-day operations of any of Monde Nissin’s businesses,” he said.
Attributable core net also declined by 19.6 percent in 2022 to P6.6 billion, driven by a decline in gross profit and increased logistical costs. Consolidated sales, however, grew 6.7 percent to P73.94 billion on higher sales in branded food group and strong recovery of domestic noodles.