Monde Nissin extends winning streak in Q3, but pandemic pressures persist

MANILA, Philippines — Monde Nissin Corp. sustained its winning streak in the third quarter, as its giant food business kept a steady beat despite pandemic troubles.

In a disclosure to the Philippine Stock Exchange on Monday, Monde Nissin reported that net income inched up 1.2% year-on-year to P2.8 billion in the July-September period. But excluding extraordinary financial events, core net income went up 8.7% on-year to a bigger P2.9 billion, thanks to savings from a new law that reduced corporate income tax.

Overall, the maker of household staples such as Lucky Me! Instant Noodles and Nissin Wafers managed to keep its balance sheet healthy despite the pandemic’s sting. In the first nine months, net income amounted to P2.3 billion, albeit down 72.4% compared with a year ago after the company paid an old liability and some expenses related to its mammoth maiden share sale last June.

Consolidated revenues recorded “its strongest growth for the year” in the third quarter at an annualized rate of 4.1%, Monde Nissin reported, bringing the cumulative topline growth at 2.2% year-on-year.

Meanwhile, net sales in the September-July period amounted to P17.7 billion, up 4.1% on an annual basis. This yielded a nine-month figure of P51.4 billion, higher by 2.2% compared with the same period last year.

But Monde Nissin said there are pandemic-induced headwinds that are already weighing on its business. Financial results showed sales of Quorn, the company’s plant meat product lines, inched down 3.8% year-on-year in the third quarter owing to challenging conditions in the United Kingdom “in particular unprecedented labor shortages in all areas of retail and distribution.”

“With costs increasing globally for power, transportation, commodities, and labor, we are continuing to navigate a balance between fair treatment to our consumers and maintaining our margins,” Henry Soesanto, company chief executive, said.

“Considering these developments, we are adjusting our full year revenue growth guidance to low to mid-single digit and anticipate continuing margin pressures,” Soesanto added.

Shares in Monde Nissin finished trading on Monday up 2.48% to P17.38 apiece.