Monde Nissin Corp., a major food manufacturing company, experienced a decline in earnings during the first half of 2023. This can be attributed to slower sales in the second quarter, as consumers tightened their budgets due to higher prices.
Henry Soesanto, the CEO of Monde Nissin, noted that their flagship Asia Pacific branded food and beverage segment (APAC BFB), which produces popular products like Lucky Me! instant noodles and SkyFlakes crackers, saw only “moderate” revenue growth. Soesanto stated that volume growth slowed down in all categories, particularly in noodles. He also mentioned that this trend reflects a larger pattern of decreased consumption in the food and beverage industry.
During the second quarter, Monde Nissin’s APAC BFB sales grew by 3.2% and by 7% during the first half of the year. However, their Meat Alternatives business continued to be a drag on earnings, with a decline of 3.7% and 5% in the second quarter and first half of the year, respectively.
Monde Nissin reported a nearly 18% decrease in net income for the first half of the year, amounting to P3.5 billion. This decline can be attributed to restructuring costs in the meat alternative business. Nevertheless, core earnings before interest, taxes, depreciation, and amortization (EBITDA) only slipped by 4.4% to P6.46 billion.
Soesanto reassured that the restructuring of their meat alternative business has been mostly completed, and they are on track to achieve the expected cost savings. Despite the challenges in the industry, he expressed cautious optimism that EBITDA will continue to improve in the coming quarters.
READ:
Monde Nissin restructures alternative meats business
Monde Nissin books lower Q1 profit amid alternative meat business restructuring
Your subscription could not be saved. Please try again.
Your subscription has been successful.
Denial of responsibility! SamacharCentrl is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
