Monde Nissin Corp. expects its full year 2023 result to post a high single-digit growth in terms of sales, with gross margin in line with 2022 figures.
In 2022, Monde Nissin posted a topline of P73.9 billion with gross margin at 31.3 percent.
Core profit, meanwhile, is expected to grow by mid-teens.
Monde Nissin said its Asia Pacific branded food and beverage (APAC BFB) posted strong topline growth aided by growth across all its major categories, particularly a robust growth in noodles and beverages.
“Our preliminary fourth quarter results reflect the continued strength that we saw during the third quarter driven by our APAC BFB business. This led to another all-time high revenue for the quarter and for the year,” said Henry Soesanto, Monde Nissin chief executive officer.
Soesanto said the company’s noodles market share improved by 140 basis points (bps) to 67.3 percent and 380 bps to 67.5 percent for the past 52-week and 12-week periods as of December 2023, respectively.
Fourth quarter sales growth in the domestic business was backed by all-time high volumes, which grew by more than 5 percent year-on-year and 2 percent sequentially, according to Soesanto.
“We saw continued margin expansion of over 400 bps year-over-year in the fourth quarter. Our commodity lock- ins for wheat and palm oil until the second quarter and third quarter of 2024, respectively, are lower by a low double-digit percentage compared to the same period last year,” he added.
Monde Nissin said its meat alternative business continues to face headwinds.
“While the UK retail market has remained weak and continues to affect the topline, we anticipate being at least EBITDA neutral in the fourth quarter. The annual impairment test (IAS 36) in our meat alternative business is ongoing; however, we also believe the family’s financial support will largely cover any potential impairment at the parent level,” Soesanto said.
