Monde Nissin Corp. trimmed its losses in 2023 to P626 million from P13.01 billion in 2022.
Monde Nissin’s reported loss took into account a P1.3-billion family guaranty infused by Soesanto to cushion the impact of the challenged meat alternative business under Qorn Foods.
Revenues grew 9.2 percent to P80.17 billion from P73.88 billion the prior year, driven by a broad-based Asia Pacific branded food and beverage (BFB) volume growth, offsetting softness in the meat alternative business.
In the fourth quarter alone, the company reported a core profit of P6.6 billion, up 13.6 percent from the prior year’s P5.81 billion.
Revenues grew 5.2 percent to P20.9 billion from P19.86 billion.
“Core net income attributable to shareholders for the fourth quarter increased by 101.1 percent to P1.9 billion due to the strong performance of the Asia Pacific BFB business,” it said.
“On a comparable basis, (the) Asia Pacific BFB net sales for the fourth quarter increased by 7.7 percent to P17 billion. The domestic business grew 6.8 percent to P15.9 billion, reflecting volume growth across all categories,” it added.
Revenues of Qorn Foods declined 6.3 percent to P3.9 billion in the fourth quarter due to the continued category headwinds.
The UK business of Qorn declined by 6.5 percent due to the challenging retail market.
“The Asia Pacific BFB business saw strong topline growth and profitability, translating into strong operating cash flows,” said Henry Soesanto, Monde Nissin chief executive officer.
“For meat alternatives, we continue to face a challenging environment, which necessitated us incurring a further impairment of P10.1 billion after-tax this year, which was largely offset by the previously announced financial support offered by Monde Nissin’s controlling family shareholders, such that retained earnings were minimally impacted at the level of the listed parent company. Despite these continued category headwinds, our foodservice business continues to perform well. We expect a high single-digit revenue decline and approximately EBITDA (earnings before interest, taxes, depreciation and amortization) breakeven for the first quarter. Our input costs continue to improve, and we expect this to be reflected in our margins as the year progresses,” he added.
