MONDE Nissin Corp. posted a record core net income attributable to shareholders of P5.5 billion in the first half (H1), up 16.1 percent from a year earlier and backed by a higher gross profit and a stronger protein business.
In a disclosure on Wednesday, the food and beverage company said consolidated revenue increased 6.8 percent to P44.3 billion, from P41.46 billion a year earlier, while reported net income rose 31.2 percent to P5.8 billion from P4.4 billion.
For the second quarter alone, core net income attributable to shareholders increased 23.6 percent to P2.2 billion while reported net income grew 26.4 percent to P2.1 billion.
The company said the quarterly earnings growth was driven by increased gross profit and foreign exchange gains compared with foreign exchange losses incurred a year ago.
Monde Nissin’s Asia-Pacific Branded Food and Beverage (APAC BFB) business generated P36.9 billion in net sales during the first half, up 5.9 percent from P34.87 billion a year earlier, with domestic sales growing 6.4 percent to P35 billion.
Gross profit from the APAC BFB business rose 9 percent to P13.3 billion.
Core earnings before interest, taxes, depreciation and amortization (Ebitda), however, grew at a slower 2.3 percent to P8 billion from P7.85 billion as higher transportation and delivery costs, and increased advertising and promotion investments weighed.
The company’s protein business, which includes Quorn Foods, delivered stronger growth. Protein revenue increased 12 percent to P7.38 billion and was up 2.2 percent on a constant-currency basis, driven by growth in the snacks segment of its United Kingdom retail channel.
Protein gross profit jumped 44 percent to P2.29 billion while gross margin expanded by 688 basis points to 31 percent. Core Ebitda from the business more than tripled to P574 million from P165 million a year earlier.
For the first half, total core Ebitda rose 7.4 percent to P8.61 billion from P8.02 billion, while core net income after tax increased 15.2 percent to P5.46 billion.
Core net income attributable to shareholders from APAC BFB rose 8.9 percent to P5.39 billion as the protein business contributed P106 million to revenues after reporting a P215-million loss a year earlier.
Monde Nissin ended the first six months to June with P14.4 billion in cash and cash equivalents, and a net debt-to-equity ratio of 0.10. Outstanding debt stood at P2.1 billion. Operating cash flow reached P7.6 billion during the first half, compared with P4.31 billion a year earlier.
CEO Henry Soesanto said the company remained “mindful of ongoing input cost pressures and will continue to manage the business prudently, while remaining sensitive to our consumers should further pricing adjustments become necessary.”
Monde Nissin shares on Wednesday rose P0.07, or 0.98 percent, to close at P7.23 each.
