Monde Nissin H1 2023 profit down 18% as sales slowed
MANILA -Food manufacturing giant Monde Nissin Corp. booked lower earnings during the first semester of 2023 while underlining slowing sales in the second quarter as consumers tightened belts because of higher prices.
Monde Nissin CEO Henry Soesanto noted “moderate” revenue growth at its flagship Asia Pacific branded food and beverage segment (APAC BFB), which makes Lucky Me! instant noodles and SkyFlakes crackers
“[V]olume growth slowed down in all categories, most noticeably in noodles,” Soesanto said in a statement.
“This reflects what we have observed over the past few months and what appears to be an overall macro trend of more modest consumption across many food and beverage categories,” he added.
The company’s APAC BFP sales grew 3.2 percent during the second quarter and 7 percent during the first semester. Meat Alternatives continued to weigh on earnings, dropped 3.7 percent and 5 percent during the second quarter and first half of the year.
Monde said net income during the first semester fell nearly 18 percent to P3.5 billion due to restructuring costs at the meat alternative business. Core earnings before interest, taxes, depreciation, and amortization rose (Ebitda) slipped 4.4 percent to P6.46 billion.
“The previously announced restructuring of our meat alternative business has been substantially completed and we are on track to deliver previously guided savings,” he said.
“Despite the continued category challenges, the Ebitda improved during the second quarter and we are cautiously optimistic that this will continue in the coming quarters,” he added.