Monde Nissin Corporation's Q12024 Core Net Income Growth of 53.4%

The unaudited financial results of Monde Nissin Corporation (Monde) for the first quarter that concluded on March 31, 2024, were released. The first quarter's consolidated revenue increased 2.1% to P20.3 billion on a comparable basis, mostly as a result of fewer selling days in APAC BFB because of the Philippines' Holy Week break. 

While gross margin increased by 553 basis points on an annual basis to 35.4% on a comparable basis, owing to lower material costs and pricing in the APAC BFB sector, offset by a fall in Quorn gross margin, gross profit for the first quarter increased by 20.9% to P7.2 billion.

The APAC BFB record core net income of P3.1 billion contributed to a 53.4% growth in core net income attributable to shareholders for the first quarter, to P2.9 billion. The first quarter's reported net income increased by 79.9% to P3.5 billion, mostly as a result of interest income, foreign exchange gains, and the fair value gain on the guarantee asset.
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For the first quarter, APAC BFB net sales rose 2.2% to P16.9 billion. Owing to the Philippines' Holy Week break, the domestic business experienced a 2.0% year-over-year growth to P15.8 billion. This was impacted by fewer selling days.

Due to decreased commodity costs and pricing, gross profit increased by 26.5% to P6.5 billion in the first quarter, while gross margin increased by 741 basis points year over year. When comparing the first quarter of this year to the same period the previous year, core EBITDA increased by 28.7% to P4.6 billion as a result of improved gross profit.

Due to the ongoing downturn in the category, Meat Alternative revenue fell 4.0% to P3.4 billion in the first quarter on a comparable and constant currency basis. Revenue decreased by 2.7% in the first quarter on a reported basis. Because of the difficult retail environment, the UK fell 2.8% in the first quarter on a comparable and constant currency basis. On a comparable basis, foodservice revenue increased by 14.5% in Q1.

When compared to the same period last year, the gross profit for the first quarter decreased by 14.5% to P685 million on a comparable basis, while the gross margin fell by 376 basis points to 20.0%. This was caused by a decline in production volume as we reduced inventory, which had an impact on the recovery of fixed costs and was somewhat offset by lower input costs. Lower gross profit was the cause of the first quarter's P60 million core EBITDA deficit. The benefits of restructuring, cost containment, and the timing of marketing expenditures are the main reasons for the improvement over the same period last year.

With P13.5 billion in cash and cash equivalents and a steady net debt-to-equity ratio of 0.12, Monde Nissin's financial condition is still good. As of March 31, 2024, the outstanding debt was P3.1 billion. The first quarter of 2024 had P2.8 billion in operating cash flow. 

Henry Soesanto, Chief Executive Officer, commented, “The first quarter saw significant expansion in gross margin and overall profitability driven by our APAC BFB business. This was despite topline growth being moderated during the quarter, partially due to the timing of the Holy Week holiday here in the Philippines. Our APAC BFB margins and profitability have substantially rebounded from last year’s levels, and we believe, given current conditions, that the second quarter will continue to reflect these improvements. For our Meat Alternative business, we remain vigilant, minimizing costs and looking for efficiencies with the goal of remaining EBITDA flat or better for the year."

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®.