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Food manufacturer Monde Nissin Corp. said Monday its core net income likely increased by double-digit in 2023 on sustained growth of its branded food and beverage business.
Monde Nissin said in a disclosure to the stock exchange 2023 revenues also went up by high single-digit year-on-year as fourth-quarter sales hit an all-time high.
“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 [Asia-Pacific branded food and beverage] business. This led to another all-time high revenue for the quarter and for the year,” Monde Nissin chief executive Henry Soesanto said.
Soesanto said the growth in branded food business was supported by an increase in sales across major categories, particularly the noodles and beverage segments.
The company’s noodles market share improved by 140 basis points (bps) to 67.3 percent and 380 bps to 67.5 percent in the past 52 weeks and 12 weeks as of December 2023, respectively, he said.
He said fourth-quarter sales growth in the domestic business was backed by all-time high volumes, which grew by more than 5 percent year-on-year and 2 percent sequentially.
“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,” Soesanto said.
The group’s plant-based meat business was expected to register a post single digit decline in sales as it faced headwinds in the UK market.
Monde Nissin restructured and rationalized the operations of its meat alternative business in 2023 after its profitability was affected by higher inflation and interest rates.
Monde Nissin said despite the poor performance of its plant-based meat business, it remained positive about the long-term growth of the company as protein requirements continue to grow.