Double-digit sales growth boosts Monde Nissin's income

MANILA, Philippines — Monde Nissin Corp. (Monde Nissin) announced a 1.1% increase in its core net income for the first nine months of this year, reaching P5.7 billion, up from P5.64 billion. 

The growth is attributed to a significant double-digit rise in net sales, according to the company's report released on Wednesday.

The company's consolidated revenues for the period showed an increase of 10.5%, amounting to P59.65 billion, compared to P53.99 billion in the previous year. 

The surge in revenues was primarily driven by the sales performance of the Asia-Pacific branded food and beverage (APAC BFB) segment, which contributed P48.95 billion to the overall revenues.

However, revenues from the meat alternative segment dropped by 4.7%, falling from P11.22 billion to P10.7 billion.

Henry Soesanto, Monde Nissin's chief executive officer, credited the growth in the APAC BFB segment to record-breaking sales of noodles. 

In the third quarter, Monde Nissin experienced a significant 41% increase in core net income, rising to P2.19 billion from P1.55 billion in the same quarter last year. The growth was supported by a 17.8% increase in net sales, which reached P20.45 billion from P17.36 billion.

During the third quarter, APAC BFB net sales increased by 24% to P16.9 billion from P13.6 billion, with the domestic business within the APAC BFB segment growing by 23.6% year-on-year to P15.7 billion. 

However, the meat alternative segment saw a 4.2% decline in revenue, dropping to P3.6 billion from P3.76 billion, due to ongoing challenges in the category.

Soesanto said that Monde Nissin is continually evaluating the performance of its meat alternative segment and expressed optimism about the future, expecting some relief from lower commodity prices.

"Looking ahead, while it is hard to predict volumes in the near term, I am hopeful that generally lowering commodity prices will provide some respite from the cost inflation we have not yet passed on," Monde Nissin's CEO said.

Monde Nissin's stock price remained stable at P7.90 per share on Wednesday.