Monde Nissin Corporation reported a core net profit of PHP2.9 billion, a modest 1.5 percent increase over same period last year, as consolidated revenue for the first quarter improved by 2.8 percent to PHP 20.9 billion.
Gross margin for the first quarter declined by 53 bps year-on-year to 34.9 percent, driven by the Asia-Pacific Branded Food and Beverage (APAC BFB) in the Asia Pacific gross margin decline of 144 bps, partially offset by Meat Alternative gross margin improvement of 304 bps due to the impact of lower input costs, supply chain transformation, lower inventory, partially offset by impact of lower production volume.
APAC BFB net sales for the first quarter improved by 4.1 percent to PHP17.6 billion, largely on volume growth in biscuits, culinary, and packaged cakes. The domestic business grew by 4.3 percent for the first quarter.
Gross profit for the first quarter increased by 0.2 percent to Php 6.5 billion. Gross margin declined by 144 bps year-on-year to 37.1 percent, primarily driven by higher commodity costs. Core EBITDA declined by 1.0 percent to PHP4.5 billion for the first quarter.
The company also reported that revenues from Meat Alternative of Quorn Foods declined by 5.8 percent as category softness continues. On a reported basis, revenue declined by 3.8 percent in the first quarter due to the impact of lower input costs, supply chain transformation, lower inventory, partially offset by impact of lower production volume.
Nonetheless, Monde Nissin reported that its financial position remains strong with PHP14.2 billion in cash and cash equivalents and a stable net debt-to-equity ratio of 0.16. The outstanding debt was at PHP2.9 bn as of March 31, 2025. Operating cash flow was at PHP2.5 billion for the first quarter 2025.
Henry Soesanto, Chief Executive Officer, commented, “Our APAC BFB business delivered modest top-line growth for the first quarter, driven by volume growth in biscuits, culinary, and packaged cakes. Q1 gross margin in line with full year 2024 gross margin. We reiterate our full year guidance for 2025 of mid-single-digit revenue growth and gross margin to be broadly in line with last year.”
On its Meat Alternative business, Mr. Soesanto added, “While it is still a bit early, we are seeing encouraging progress in our Meat Alternative business with gross margin improving over 300 bps in the first quarter. We achieved positive EBITDA by continuously focusing on cost reduction and efficiency improvement, and we are performing in line with the expectations of the latest Meat alternative valuation.”
