Monde Nissin Corporation Reported P7.5 Billion in Net Income, Up 30.9% in 9M24

​Monde Nissin Corporation (Monde Nissin) announced its unaudited financial results for the first nine months of the year ended September 30, 2024. Consolidated revenue for the first nine months increased by 3.2% to P61.1 billion on a comparable basis, with Q3 growth at 3.4%.

Gross profit for the first nine months grew by 17.5% to P21.4 billion on a comparable basis as Q3 gross profit increased by 14.8%. Gross margin for the first nine months increased by 425 bps year-on-year on a comparable basis to 34.9%, driven by APAC BFB gross margin improvement of 507 bps year-on-year due to lower commodity costs and pricing. Gross margin in Q3 improved by 351 ​bps year-on-year on a comparable basis to 35.3%, mainly driven by lower commodity costs in the APAC BFB business.

Core net income attributable to shareholders for the first nine months increased by 31.0% to P7.5 billion due to record core net income in the APAC BFB business of P8.1 billion. Core net income attributable to shareholders in Q3 increased by 7.7% to P2.4 billion; the growth rate tempered to 7.7% in Q3 compared to the core EBITDA growth rate of 14.0% due to foreign exchange losses. Reported net income for the first nine months grew by 5.0% to P6.1 billion, while reported net income declined by 13.8% to P2.0 billion in Q3 due to an impairment loss and restructuring costs in the Meat Alternative business, and foreign exchange loss, partially offset by a non-cash accounting gain of P495 million on the fair value of Meat Alternative guaranty asset.

APAC BFB net sales for the first nine months grew by 4.3% to P51.1 billion, and rose by 5.1% in Q3, largely driven by volume growth in biscuits and other categories. APAC BFB revenues in Q3 grew by 7.6% compared to Q2 due to volume growth in all categories. The domestic business grew by 4.2% for the first nine months as Q3 growth increased by 4.5%.

Gross profit for the first nine months increased by 20.5% to P19.2 billion, while it increased by 16.6% in Q3. Gross margin improved by 507 bps year-on-year to 37.6% in the first nine months and increased by 374 bps year-on-year to 38.0% in Q3, primarily driven by lower commodity costs. APAC BFB gross margin in Q3 improved by 173 bps sequentially due to improved manufacturing overhead efficiencies, lower commodity costs, and favorable mix. Core EBITDA increased by 21.9% to P12.3 billion in the first nine months and grew by 14.2% to P4.0 billion in Q3 due to gross profit improvement.

Meat Alternative revenue declined by 6.5% and 9.1% on a comparable1 and constant currency basis in the first nine months and Q3, respectively, as category softness continues. On a reported basis, revenue declined by 5.6% in the first nine months and 8.3% in Q3. Foodservice sales per day in Q3 grew by 0.3% on a comparable1 and constant currency basis.

Gross profit for the first nine months declined by 3.9% to P2.2 billion on a comparable1 basis, while gross profit in Q3 declined by 0.1% on a comparable basis. Gross margin in the first nine months declined by 41 bps year-on-year to 21.4% on a comparable basis. Gross margin in Q3 improved by 103 bps year-on-year on a comparable basis to 21.2% due to lower raw materials and utilities costs, partially offset by lower production volume as we bring down inventory, impacting fixed costs recovery. Core EBITDA loss of P137 million in the first nine months was due to lower gross profit, while core EBITDA in Q3 was at P7 million due to lower operating expenses, aided by the restructuring benefits.

Monde Nissin’s financial position remains strong with P14.4 billion in cash and cash equivalents and a stable net debt-to-equity ratio of 0.08. The outstanding debt was at P3.3 billion as of September 30, 2024. Operating cash flow was at P8.0 billion for the first nine months of 2024.

Henry Soesanto, Chief Executive Officer, commented, “The APAC BFB business saw solid topline growth year-on-year in the third quarter, supported by volume growth in biscuits and other categories. Our Q3 APAC BFB gross margin improved year-over-year and we expect this to continue in the fourth quarter. We expect better year-on-year and sequential topline growth in the fourth quarter, aided by improved supply. We are off to a good start in October for our domestic business with high single-digit growth and our first month achieving P6 billion in domestic revenues. Moreover, we have new initiatives such as the launching of new categories.”

Regarding the Meat Alternative business, Mr. Soesanto went on to say, “Given the continued challenges in the Meat Alternative business, we plan to streamline costs and simplify operations through a restructuring and business transformation that will affect all parts of the organization. Alongside this, Marco has decided to step down as the CEO of Quorn Foods as he believes that the next phase of the business will benefit from new ideas and renewed energy. I thank him for his hard work during a very difficult time including the COVID pandemic. Marco will be succeeded by David Flochel, who has successfully led the transformation of several food and beverage businesses. David has recently joined us and will take over responsibility as CEO in January.”

Mr. Soesanto concluded by saying “We are targeting our Meat Alternative business to be EBITDA positive in 2025 with a total cash savings of GBP 8 million in 2024 and 2025 and we expect recurring annual cash savings of GBP 8 million. The cash cost to implement will be approximately GBP 8 million in 2024 and 2025, which will be partially funded from the restructuring savings. We believe these actions will put the business on a stronger footing and better set up for future success.”

Monde Nissin Corporation is a global food and beverages company headquartered in the Philippines, with a portfolio of iconic and market leading brands across fast-growing categories, including Lucky Me! noodles, SkyFlakes crackers, Fita crackers, Monde baked goods and Quorn meat alternative products. The Company aspires to improve the well-being of people and the planet, and create sustainable solutions for food security. That aspiration is reflected in our commitment to continuously improve our products to make them more delicious, nutritious, and better for the planet.

Quorn Foods is a global market leader in healthy, sustainable protein. Headquartered in Stokesley, North Yorkshire in the United Kingdom, the company offers a wide range of great-tasting products to appeal to the rapidly expanding group of people wanting to reduce their meat consumption. The company employs around 900 people and exports to 15 countries around the world, including Australia, Singapore and the United States. Quorn® is one of the United Kingdom’s top 40 FMCG brands. Quorn Foods is the reporting group which includes a main trading company, Marlow Foods Ltd. Quorn Foods encompasses all international operations of Quorn® and Cauldron®.