Monde Nissin Corp. on Thursday reported a net loss of P13.01 billion in 2022, a reversion from net income of P3.24 billion the year before that it blamed on its vegetable meat business.
The company that makes Lucky Me! noodles and Sky Flakes biscuits incurred a non-cash, non-operating impairment of the intangible assets of Marlow Foods which owns Quorn and Cauldron, the company’s alternative meat business.
Revenue grew 6 percent to P73.9 billion from the previous year’s P69.28 billion, aided by the recovery of the noodles segment in the domestic market.
In the fourth quarter alone, the business reported close to 12 percent growth in sales to P20 billion. But net income during the quarter fell 10 percent to P958 million.
Full year net sales of the company’s Asia-Pacific branded food and beverage increased by 8 percent to P58.6 billion, driven higher by price increases in all categories and especially strong volume growth in biscuits, beverages and culinary.
Its domestic business grew 9 percent to P55 billion in 2022 due to growth surpassing pre-pandemic levels in biscuits, beverages and culinary, and the strong recovery in noodles.
International revenue, meanwhile, fell 4 percent to P3.5 billion due to a temporary slowdown as measures to ensure global compliance were strengthened.
Core gross profit for the full year also fell 7 percent to P18.2 billion with core gross margin down 520 basis points to 31 percent due to commodity cost inflation partially mitigated by price increases.
Revenue from meat alternatives was flat on an organic basis due to price increases, strong growth in foodservice and market share gains in its United Kingdom retail business.
On a reported basis, revenue for the full year increased by 1 percent to P15.4 billion.
“While retail sales remain challenged, Quorn UK and ROW grew 1.4 percent and 5.4 percent year-on-year on an organic basis for the full year, respectively. The foodservice grew 51.5 percent year-on-year for the full year,” the company said.
Core gross profit for the year fell 17 percent to P5 billion while core gross margin declined by 710 basis points to 32.5 percent due to the dilutive effect of price increases versus inflation, lower volume and higher overhead cost, the company said.
