• Full-year core net income attributable down 0.8 percent to P9.7 billion
• Reported net income attributable jumps to P8.6 billion from P450 million
• Revenue rises 4 percent to P86.5 billion
• Fourth quarter core attributable income up 8.1 percent to P2.5 billion
• Dividend declared at P0.24 per share
Food giant Monde Nissin, maker of Lucky Me! instant noodles and Quorn meat alternatives, reported resilient revenue and a late-year earnings recovery, though full-year core profitability remained under pressure from higher input costs.
Core net income attributable to shareholders fell 0.8 percent to P9.7 billion, as elevated edible oil costs compressed margins across its core Asia-Pacific business.
Revenue rose 4 percent to P86.5 billion, driven mainly by volume growth in biscuits and other packaged food.
The Asia-Pacific branded food and beverage (APAC BFB) unit grew 4.7 percent to P72.8 billion, anchoring overall performance.
Monde Nissin declared a cash dividend of P0.24 per share, payable on May 21, 2026, with a record date of April 24, 2026.
Management’s view
Monde Nissin CEO Henry Soesanto said, “Our APAC BFB business delivered steady topline growth in the fourth quarter, supported by volume growth in biscuits and other categories.”
He added, “Although higher edible oil costs continued to put pressure on gross margins, our pricing actions and cost-saving initiatives, including reformulation, contributed to a modest, incremental sequential margin improvement.”
On meat alternatives, he said, “Constant currency sales declines eased further and stabilized in the [fourth quarter], with gross margin expanding over 500 bps year-on-year.”
Key figures
Gross margin declined 230 basis points to 34.8 percent, reflecting cost pressures that outpaced pricing actions for most of the year.
Reported net income attributable to shareholders rose sharply to P8.6 billion from P450 million in 2024.
The increase was largely due to a modest reversal of prior impairment losses in the meat alternative business, which lifted reported earnings despite a P501 million non-cash fair value loss.
Lingering challenges
The year was shaped by two main headwinds.
First, higher edible oil prices weighed on margins in the core business. Second, the meat alternative segment faced weak demand, limiting revenue growth even as cost and efficiency measures improved profitability.
Management responded with price increases, product reformulation, and tighter cost controls, with benefits starting to appear toward year-end.
Fourth quarter momentum
Fourth quarter results showed clearer improvement.
Revenue increased 5.7 percent to P23.2 billion. Core net income attributable to shareholders rose 8.1 percent to P2.5 billion, driven by higher gross profit.
Margins also improved sequentially, up 30 basis points from the previous quarter, signaling early gains from pricing and cost actions.
Reported net income attributable reached P1.9 billion, returning to positive territory.
Balance sheet and cash
The company ended 2025 with P15.4 billion in cash and a net debt-to-equity ratio of 0.13. Total debt stood at P1.6 billion.
Operating cash flow reached P11.3 billion, supporting both reinvestment and shareholder returns.
—Edited by Miguel R. Camus
