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Monde Nissin income down as meat alternative weighs

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ABS-CBN News

MANILA (UPDATE) - Food manufacturer Monde Nissin on Monday announced its income declined in the first quarter as its meat alternative continued to be weighed down.The Lucky Me and Skyflakes maker said its core net income attributable to shareholders declined by 11.6 percent to P1.9 billion in the first quarter compared to the same period a year ago. Reported net income for the period declined by 17 percent to P1.9 billion.The company said this reflected the decline in gross profit particularly in the meat alternative business, even as its branded food and beverage business grew. Monde Nissin makes the plant-based Quorn alternative meat brand, which is sold in the UK, US and other markets.UK and US revenues declined 1.9 percent and 33.6 percent on an organic basis in Q1, while foodservice grew 4.6 percent for the first quarter, Monde Nissin said.The company said revenue from its meat alternative business declined by 4.3 percent “due to the continued category headwinds.” Meanwhile Asia Pacific branded food and beverages net sales increased by 13.7 percent on a reported basis and 15.4 percent on a comparable basis to P16.5 billion. Monde Nissin CEO Henry Soesanto noted that the company’s noodles business had double-digit quarter-on-quarter growth.“I am also happy to report that we are now beginning to see margin improvement as our higher cost commodity lock-ins have started to expire and we expect further margin improvement as the year progresses,” Soesanto said. He added that the company is “taking the necessary steps to address the current market situation” on its meat alternative business.“Last quarter, we discussed the steps that we were taking to right-size our US business to better reflect current market realities. We are now similarly addressing our UK business, restructuring it to better weather the current category conditions while remaining agile and ready to benefit when the market for meat alternatives eventually recovers,” Soesanto said.Monde Nissin plans to invest £40 million into their UK entity.Chief Financial Officer Jesse Teo said as inflation goes down, there should be improvements in the second quarter and solid growth in the third quarter.He said the first quarter numbers this year are lower because of high base effects. He also noted the first quarter of 2022 happened before the effects of the Ukraine-Russia conflict and its disruption of global trade.“Inflation rate in UK, high commodity cost is something not under our control which severely affects our business,” he added.- With a report from Jekki Pascual, ABS-CBN News<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/03/30/23/monde-nissin-says-revenues-up-but-profits-down-in-2022">Monde Nissin says revenues up but profits down in 2022</a></li>	<li><a href="https://news.abs-cbn.com/business/01/26/23/monde-nissin-to-acquire-15-pct-stake-in-figaro-coffee">Monde Nissin to acquire 15 percent stake in Figaro Coffee Group</a></li></ul><div>RELATED VIDEO</div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2616523" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

The Lucky Me and Skyflakes maker said its core net income attributable to shareholders declined by 11.6 percent to P1.9 billion in the first quarter compared to the same period a year ago. 