Food manufacturer Monde Nissin Corp. saw earnings fall in the first nine months of 2021 amid rising commodity prices and increased spending.
In a statement to the Philippine Stock Exchange on Thursday, Monde Nissin reported core net income of 7.1 billion pesos for the January-September period, down 5.3% year-on-year.
In the third quarter alone, the company’s net profit rose 8.7% to 2.9 billion pesos, helped by a lower tax rate.
Its earnings before interest, taxes, depreciation and amortization (EBITDA) fell 9.2% to 4.1 billion pesos, “mainly due to higher raw material prices as well as higher advertising expenses. and promotion for brand building,” the company said.
Nevertheless, Monde Nissin’s consolidated revenues increased by 4.1% to reach 17.7 billion pesos in the third quarter, bringing the figure for the first nine months to 51.448 billion pesos, up 2.2% from a year to year.
“As the costs of electricity, transportation, raw materials and labor rise worldwide, we continue to balance the issue of treating our consumers fairly and maintaining our margins. Based on these developments, we are adjusting our full-year revenue growth guidance to below mid-digit and anticipate continued pressure on margins,” said Henry Soesanto, CEO of Monde Nissin.
Monde Nissin is a global food and beverage company headquartered in the Philippines, with a portfolio of iconic and market-leading brands in fast-growing categories, including Lucky Me! noodles, SkyFlakes Crackers, Fita Crackers, Monde Bakery Products and Quorn Meat Alternatives. — News VBL, GMA