MONDE NISSIN CORP. saw a P450-million net income for 2024, reversing a P626.58-million net loss in 2023, driven by volume growth in its Asia-Pacific business.
“Reported net income for the year was P450 million, primarily due to higher core net income after tax, offset by a P6.8-billion after-tax, non-cash impairment of assets in the meat alternative business and a P2.6-billion non-cash accounting loss on the fair value of the meat alternative guaranty asset,” Monde Nissin said in a regulatory filing on Thursday.
Consolidated revenue rose by 3.7% to P83.1 billion, while gross profit grew by 16% to P28.7 billion. Core attributable net income increased by 28.6% to P9.8 billion.
Net sales in the Asia-Pacific branded food and beverage (APAC-BFB) segment rose by 5.4% to P69.5 billion, driven by volume growth across all categories.
“Our APAC BFB business delivered strong top-line growth and profitability, resulting in record revenues and core net income for both the quarter and the year. This success was driven by volume growth across all categories,” Monde Nissin Chief Executive Officer Henry Soesanto said.
“We anticipate mid-single-digit revenue growth in 2025, while we expect full-year gross margin to be broadly in line with last year. Margin trends will vary quarter to quarter based on our cost savings plans, commodity lock-ins, and base comparison,” he added.
However, Monde Nissin said revenue in the meat alternative segment declined by 4.5% to P13.59 billion.
“Regarding our meat alternative business, we achieved earnings before interest, taxes, depreciation, and amortization (EBITDA) neutrality for the year by focusing on cost reduction and efficiency improvement,” Mr. Soesanto said.
“Additionally, unfavorable market conditions resulted in a mark-to-market loss of P2.6 billion on our guaranty asset. Despite ongoing revenue challenges, we expect a noticeable and durable improvement in EBITDA this year compared to the largely breakeven numbers we have seen over the past couple of years, reducing the risk of further impairments,” he added.
Monde Nissin shares fell by 2.37% or 17 centavos to P7.01 apiece on Thursday. — Revin Mikhael D. Ochave
