Food and beverage firm Monde Nissin Corporation is establishing a majority-owned subsidiary, which it will use to explore start-up opportunities in new categories and businesses.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said its Executive Committee has authorized Monde Nissin’s subscription to 87,500 shares, which is expected to be 70 percent of the outstanding common shares of Amico.
Amico is a new Philippine domestic corporation in the process of being incorporated for the primary purpose of engaging in the importing, exporting, repacking, processing, buying, selling, marketing, distributing, trading or otherwise dealing in (on wholesale basis and to the extent allowed under Philippine law, on retail basis) all kinds of goods, wares, and merchandises, which are or may become articles of commerce, among others.
The subscription price for Amico’s 87,500 outstanding common shares is P17.5 million based on par value and will be paid in cash. This subscription will happen on or before Sept. 30, 2024.
Monde Nissin reported that its net income for the first half grew by 17.4 percent to P4.1 billion although second quarter 2024 profit fell 60.7 percent to P610 million due to a non-cash accounting loss of P1.5 billion on the fair value of its Meat Alternative guaranty asset.
Core attributable net income for the first half increased by 45.5 percent to P5.1 billion while it increased by 36.5 percent to P2.2 billion in the second quarter due to higher core net income in the Asia-Pacific Branded Food and Beverage (APAC BFB) business.
Consolidated revenue for the first half increased by 3.1 percent to P40.1 billion on a comparable1 basis, with second quarter growth at 4.2 percent to P19.8 billion.
Gross profit for the first half grew by 19 percent to P13.9 billion as second quarter gross profit increased by 17 percent to P6.7 billion.
Gross margin for the first half increased by 464 bps year-on-year on a comparable1 basis to 34.7 percent, driven by an APAC BFB gross margin improvement of 576 bps year-on-year due to lower commodity costs and pricing.
Gross margin for the second quarter improved by 373 bps year-on-year on a comparable1 basis to 34 percent, mainly driven by lower commodity costs in the APAC BFB business.