LISTED Monde Nissin Corp. registered a 68% growth in its net income for the third quarter after the stronger performance of its food and beverage unit.
In a stock exchange disclosure on Wednesday, Monde Nissin said earnings for the July-September period rose to P2.3 billion from P1.3 billion a year ago.
Consolidated revenues improved 15% to P20.5 billion from P17.7 billion last year, with those of its Asia-Pacific branded food and beverage (APAC BFB) business climbing 24% to P16.9 billion.
“The domestic business grew 23.6% year-on-year and 8.9% quarter-over-quarter to P15.7 billion in the third quarter, reflecting strong growth in noodles and other categories, with noodles volume at a record high,” Monde Nissin said.
Monde Nissin’s alternative meat business, Quorn Foods, logged a 4.2% decline in revenue during the third quarter to P3.6 billion on a reported basis amid challenges in the retail market.
“The United Kingdom [market] declined by 9.5% on a constant currency basis in the third quarter due to the challenging retail market. The food service revenue grew by 1.3% on a reported basis,” Monde Nissin said.
Meanwhile, Monde Nissin said its nine-month net income rose 3% to P5.8 billion from P5.6 billion a year ago.
The company’s consolidated revenue rose 8.7% to P59.65 billion from P54.85 billion last year.
Monde Nissin said its APAC BFB business posted a 14.5% growth as of September led by higher volume for its noodle products.
Monde Nissin Chief Executive Officer Henry Soesanto said the company’s APAC BFB business is expected to perform stronger for the last quarter of the year.
“The APAC BFB business saw strong topline growth both year over year and sequentially during the third quarter. This growth was aided by record volume in noodles. In addition to strong revenue growth, our gross margins continue to improve, and we expect further improvement in this current quarter,” Mr. Soesanto said.
Meanwhile, Monde Nissin announced that its Singapore unit, Monde Nissin Singapore Pte. Ltd. received “meaningful financial support” for the valuation of its alternative meat business.
The company said the financial support was given by the controlling family shareholders.
“The financial support aims to significantly reduce the net cumulative impairment if any, starting with the calendar year ending December 31, 2023 and every year thereafter up to calendar year ending December 31, 2032 with settlement (if any) occurring on a one-time basis on or before June 30, 2033,” Monde Nissin said.
According to Monde Nissin, the cash settlement will be capped by the value of up to approximately 12% of outstanding shares, or 2.156 billion shares, of Monde Nissin based on the weighted average stock price for the last five trading days of calendar year 2032.
Mr. Soesanto said the financial support made by him and family shareholders came after “listening to and reflecting on the concerns that some of our shareholders have expressed about the current challenges in the meat alternative category which are impacting our business in the UK.”
“Despite our long-term view that the category has a bright future, we cannot ignore the headwinds we are facing,” Mr. Soesanto said.
“We have previously announced significant operational and strategic changes and now we wish to extend this significant personal financial support to help alleviate investors’ concern while we navigate through the current macroeconomic environment,” he added.
On Wednesday, shares of Monde Nissin closed unchanged at P7.90 apiece. — Revin Mikhael D. Ochave
