Food manufacturer Monde Nissin Corporation reported that its net income dipped 0.9 percent to P2.3 billion in the first quarter of 2022 while core attributable net income dropped 13.5 percent to P2.1 billion.

In a media briefing, the firm said its earnings benefited from lower interest expense due due mainly to the repayment of the Arran convertible note and bank loans in 2021.

Consolidated revenue increased 7.2 percent to P18.3 billion for the first quarter “on the strong performance of the Asia Pacific Branded Food and Beverage (APAC BFB) domestic business.”

“While we had a strong start to the year and remain optimistic about the continuation of the growth we are seeing, commodity inflation remains a concern for our APAC BFB business and it is something that we will proactively respond to as the year progresses,” said Monde Nissin Chief Executive Henry Soesanto.

He added, “We are working hard to continually improve our efficiency and being mindful of our consumers when price increases become warranted, striving to maintain our growth momentum and recovering margin where possible.”

“As for our Meat Alternative business, while the retail environment remains challenging, our market share continues to be stable. Our foodservice segment is also showing sustained momentum as it posted its best-ever quarter. We will leverage on these encouraging signs and work towards overcoming the short-term challenges,” Soesanto noted.

First quarter gross margin showed a 150 bps recovery from the fourth quarter of 2021 due to pricing actions and volume growth, but decreased to 35.1 percent year-on-year as input costs continue to rise.

Year-on-year, core EBITDA declined by 9.9 percent to P3.6 billion due partly to the company’s continued strategic investments in brand and new product development during the quarter. Relative to the fourth quarter of 2021, core EBITDA grew 78.1 percent as operating expenses declined.

APAC BFB net sales for the first quarter increased by 8.6 percent to P14.5 billion due to the improving performance of the domestic business, which grew 10.5 percent to P13.7 billion on price increases and continued volume growth for the noodles, culinary, and packaged cake categories. Biscuits also posted volume growth to pre-pandemic level.

Meanwhile, the international business declined 15.4 percent to P854 million due mainly to shipping constraints during the quarter.

Meat Alternative revenue decreased 1.3 percent year-on-year on an organic basis as the U.K. grocery market remains in decline and as the country continues to experience challenging macroeconomic conditions.

On a reported basis, revenue increased by 2.1 percent to P3.8 billion due to foreign exchange gains.

Retail sales posted a decline year-on-year as the market rebalances to out-of-home consumption. Meanwhile, foodservice delivered a record quarter and grew 124 percent.