FOOD AND BEVERAGE manufacturer Monde Nissin Corp. said it expects to report a return to profitability for full-year 2024.
“Despite these challenges, both the impairment and the mark-to-market loss, we expect our consolidated reported net income after tax to return to positive territory for the full year (2024),” Monde Nissin said in a statement to the stock exchange on Wednesday.
Monde Nissin said it anticipates record-high revenue for 2024, with a strong fourth quarter led by its Asia-Pacific Branded Food and Beverage (APAC-BFB) business.
The company has yet to disclose its full-year 2024 financial results.
“I am pleased to announce that our preliminary fourth-quarter results reflect sustained momentum from the third quarter, driven by our APAC-BFB business. This has resulted in record-high revenues for both the quarter and the year,” Monde Nissin Chief Executive Officer Henry Soesanto said.
In 2023, the manufacturer posted a P625-million net loss due to a non-cash, non-operating impairment of assets in its meat alternative business amounting to P10.1 billion, partly offset by a P1.3-billion guaranty asset gain. Consolidated revenue rose by 8.4% to P80.17 billion.
Monde Nissin said it expects profitability for 2024 despite a “substantial” impairment charge and an anticipated “material mark-to-market loss on the fair value of its guaranty asset.”
“Our ongoing annual impairment test for the meat alternative business indicates a significant impairment charge this year, estimated between GBP 80 million and GBP 100 million. Although substantial, this figure is notably lower than last year’s impairment,” it said.
Monde Nissin anticipates consolidated sales growth to exceed 3% annually on a comparable basis, driven by strong gross margin growth in the APAC-BFB segment.
Consolidated core net income is projected to increase by over 25%, with consolidated core net margin expected to expand by more than 200 basis points (bps) compared to the same period last year.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the meat alternative business are expected to be neutral.
For the fourth quarter, Monde Nissin said it expects to achieve positive EBITDA despite ongoing topline weakness.
It added that the APAC-BFB business saw an 8% revenue growth during the period, driven by volume growth across all categories, with contributions from both domestic and international markets.
However, Monde Nissin said its meat alternative business is expected to post a mid-teens sales decline year-on-year on a constant-currency and comparable basis due to fewer selling weeks compared to last year, as the business continues to operate in a challenging environment.
Monde Nissin will hold its full-year 2024 earnings call next month.
On Wednesday, Monde Nissin shares fell by 0.36% or three centavos to P8.42 apiece. — Revin Mikhael D. Ochave
