MONDE NISSIN Corp. reported on Wednesday a 23.9% lower attributable net income for the second quarter, amounting to P1.55 billion compared to the previous year’s P1.92 billion.
In a regulatory filing, the company’s top line increased by 1.43% to P19.14 billion from the prior year’s P18.87 billion.
Its Asia-Pacific Branded Food and Beverage (APAC BFB) business grew by 2.6% to P15.57 billion from P15.17 billion.
“The APAC BFB business experienced moderated topline growth in the second quarter as volume expansion slowed down across all categories, particularly in noodles,” noted Chief Executive Officer and Executive Vice-President Henry Soesanto.
“This trend aligns with observations over the past few months and a broader macro trend of more modest consumption within many food and beverage sectors,” Mr. Soesanto added.
Its meat alternative business, Quorn Foods, saw a 3.5% revenue decrease for the three-month period, falling to P3.57 billion from P3.7 billion.
“The previously announced restructuring of our meat alternative business has been substantially completed, and we are on track to achieve the previously guided savings,” he said.
Meanwhile, for the first half, its attributable net income also declined to P3.49 billion, marking a 17.9% drop from the prior year’s P4.25 billion.
This drop was attributed to decreased gross profits, particularly in its meat alternative business, increased marketing expenses in the APAC BFB business, and foreign exchange losses.
First-half net sales for the six-month period grew by 5.4% to P39.19 billion from the prior year’s P37.17 billion.
Revenues for the company’s APC BFB segment increased by 8% for the first semester, reaching P32.1 billion from P29.71 billion.
Its domestic business expanded by 9.3% to P30 billion, reflecting continuous growth in biscuits and other categories, balanced by softening demand for noodles.
International revenue likewise grew by 20.8% to P2.1 billion due to robust growth in biscuits.
Its meat alternative unit observed a 5.2% sales decline for the period, decreasing to P7.09 billion from P7.46 billion, as the UK experienced a 5.5% decline on a constant currency basis in the first half due to a challenging retail market.
Shares of Monde Nissin fell by 2.47% to 7.9 apiece on Wednesday. — Adrian H. Halili
