By Adrian H. Halili | BusinessWorld
March 31, 2023
MONDE NISSIN CORP. suffered a net loss of P13.03 billion in 2022, a reversal of its P3.12-billion net income a year earlier, due to a one-off charge the company incurred in Marlow foods.
“The impairment was caused by the application of a higher discount rate due to the prevailing higher interest rates and risk premiums, some margin compression, and rationalization of the trend in the meat alternative category,” the company said in a disclosure to the stock market on Tuesday.
For 2022, Monde Nissin reported a 6.6% increase in net sales to P73.88 billion from the P69.28 billion reported the previous year.
“Despite the challenges we faced this past year with inflation headwinds and our noodles recall in the third quarter, we finished the year with strong topline growth across all of our categories in Asia Pacific branded food and beverage (APAC BFB),” said Monde Nissin Chief Executive Officer Henry Soesanto.
Cost of goods sold increased by 16.55% to P50.92 billion from P43.69 billion in 2021, while sales and general expenses more than doubled to P36.46 billion from P16.19 billion.
Sales for Monde Nissin’s APAC BFB segment increased by 8.4% to P58.55 billion. Sales for its domestic unit rose by 9.3% to P55 billion, driven by volume growth in its biscuits, beverage, and culinary products.
International revenues declined by 4.1% to P3.5 billion, which the company attributed to a temporary slowdown as ii takes measures “to ensure global compliance were strengthened.”
Additionally, sales from its alternative meat business, Quorn Foods, reached P15.39 billion, a 1% increase compared with the previous year.
The company’s core attributable net income declined by 19.6% to P6.59 billion while its core gross profits also declined by 9.6% to P23.15 billion in 2022.
Meanwhile, the company reported its fourth-quarter core net income at P958 billion, a decline of 10.4% from the previous year.
Its net sales for the period were at P19.04 billion, up 11.8% growth, with APAC contributing P14.88 billion and Quorn contributing P4.17 billion, a 15% and 1.3% increase, respectively.
The company said in a media briefing that it will move most of its operating expenditures in its alternative meat business into capital expenditures (capex) for its APAC segment.
“You could say we are quite bullish in our capex projection for APAC, the volume momentum is there,” said Monde Nissin Chief Financial Officer Jesse C. Teo in a media briefing on Thursday.
“For meat alternative, we will have a more modest capex budget a lot of this will be primarily geared towards cost savings projects, possible insourcing if the financials are warranted,” Mr. Teo added.
For the year, the company has allotted about P7.42 billion for capex, P6.05 billion will go to its APAC BFB segment and P1.37 billion will go to its alternative meat unit.
Shares in Monde Nissin fell by 1.6% or 18 centavos to close at P11.06 apiece, on Thursday.