MONDE Nissin Corp. said on Monday that it anticipates a high single-digit year-on-year sales growth for the full year of 2023.
The gross margin is expected to be in line with the 2022 margin, the listed food and beverage manufacturer said in a regulatory filing.
“The gross margin expansion in Asia-Pacific Branded Food and Beverage (APAC BFB) was offset by the decline in meat alternative gross margin in 2023,” the company noted.
“We expect core net income to grow by mid-teens for the full year 2023,” it added.
Monde Nissin said that the projection is based on “certain preliminary unaudited financial results for the fourth quarter of fiscal year 2023,” adding that all figures are “approximate due to the preliminary nature of the announcement.”
“I am pleased to share that our preliminary fourth quarter results reflect the continued strength that we saw during the third quarter driven by our APAC BFB business,” Monde Nissin Chief Executive Officer (CEO) Henry Soesanto said.
“This led to another all-time high revenue for the quarter and for the year,” he added.
According to the company, its APAC BFB business saw a “strong top line growth” both year over year and sequentially during the fourth quarter, which was supported by better performances of the noodles and beverages segments.
“Our noodles market share improved by 140 basis points (bps) to 67.3% and 380 bps to 67.5% for the past 52-week and 12-week periods as of December 2023, respectively,” it said.
“The fourth quarter sales growth in the domestic business was backed by all-time high volumes, which grew by more than 5% year on year and 2% sequentially,” it added.
“We saw continued margin expansion of over 400 bps year over year in the fourth quarter. Our commodity lock ins for wheat and palm oil until the second quarter and third quarter of 2024, respectively, are lower by a low double-digit percentage compared to the same period last year.”
Monde Nissin also said its meat alternative business is expected to have a single-digit decline for the fourth quarter as it continues to “navigate in a challenging environment.”
“While the United Kingdom retail market has remained weak and continues to affect the top line, we anticipate being at least earnings before interest, taxes, depreciation, and amortization (EBITDA) neutral in the fourth quarter,” it said.
“The annual impairment test in our meat alternative business is ongoing; however, we also believe the family’s financial support will largely cover any potential impairment at the parent level,” the company added.
On Monday, shares of Monde Nissin rose by 15 centavos or 1.84% to P8.30 apiece. — Revin Mikhael D. Ochave
