Monde Nissin Corp., the maker of Sky Flakes biscuits and Lucky Me! noodles, reported a 21 percent drop in first-quarter net income to ₱2.73 billion, down from ₱3.48 billion a year earlier, citing continued pressure on its meat alternative segment and softness in its core noodle business.
Despite the earnings decline, the company posted a modest 3 percent increase in net sales to ₱20.88 billion, driven primarily by growth in its Asia Pacific branded food group. Gains in biscuits, packaged cakes, and culinary products offset a slight decline in noodle sales and ongoing headwinds in its Quorn meat alternatives division.
Domestically, Monde Nissin’s sales rose 4 percent in 1Q, though the flagship Lucky Me! noodles experienced a minor dip in volume. Nevertheless, Lucky Me! maintained its market dominance, gaining 1.6 percentage points in market share to reach 68.6 percent, according to Nielsen, and remaining the country’s most chosen food brand for a tenth consecutive year, based on Kantar data.
The company’s international branded business, which represents just 6 percent of the segment, rose 2 percent year-on-year. Noodle sales grew internationally, but this was partly offset by weaker biscuit performance in North America, affected by 4Q 2024 inventory replenishment timing and macroeconomic uncertainty in the U.S.
Monde Nissin’s meat alternative segment, led by Quorn, saw net sales decline nearly 4 percent on a reported basis (6 percent in constant currency) to ₱3.29 billion. The UK market continued to drag on performance, although the company noted improved sales in the U.S. and other global markets. Quorn, it added, expanded its market leadership with share gains in both chilled and frozen categories.
Looking ahead, Monde Nissin expects mid-single-digit growth in its branded food business for the full year. While challenges persist in its alternative protein unit, the company anticipates some easing of pressures in the coming quarters.
