Food and beverage firm Monde Nissin Corporation reported a 7.2 percent decline in attributable core net income to ₱4.7 billion in the first half of 2025 due to lower margins of its Asia-Pacific Branded Food and Beverage (APAC BFB) business as well as foreign exchange losses.

In a disclosure to the Philippine Stock Exchange, the firm said attributable core profit for the second quarter dropped 18.5 percent to ₱1.8 billion this year as it was negatively impacted by a foreign exchange loss compared to a gain in the same quarter last year after the Philippine Peso appreciated to ₱56.33.

Reported net income for the first half increased by 7.8 percent to ₱4.4 billion. In the second quarter, the reported net income surged by 174.8 percent to ₱1.7 billion compared to ₱611 million last year, driven by a significantly lower non-cash loss of ₱15 million on the fair value of the Meat Alternative guaranty asset, compared to a P1.5 billion loss last year.

Consolidated revenue for the first half increased by 3.3 percent to ₱41.5 billion, with second quarter growth at 3.8 percent.

“Our APAC BFB business delivered modest topline growth in the second quarter, driven by volume growth in biscuits and culinary, and so far, this quarter, we have experienced good growth across all our APAC BFB domestic categories with July being the best month of the year so far,” said Monde Nissin CEO Henry Soesanto.

He noted that, “While we have experienced pressure on our second quarter gross margin, we have implemented a range of pricing and cost-saving initiatives addressing this.

“We expect gross margin will improve in the second half of the year compared to the first half; however, full year gross margin is expected to be lower than last year, reflecting ongoing input cost pressures.”

APAC BFB net sales for the first half grew by 4.6 percent to ₱34.9 billion and by five percent in the second quarter, largely driven by volume growth in biscuits and culinary.

On the other hand, the domestic business grew by 5.3 percent for the first half, with the second quarter growth at 6.4 percent.

Gross profit for the first half declined by 2.1 percent to ₱12.2 billion and by 4.7 percent to ₱5.7 billion in the second quarter. Gross margin declined by 239 bps year-on-year to 35 percent in the first half and declined by 335 bps year-on-year in the second quarter, primarily driven by palm oil and coconut oil.

Meat Alternative revenue declined by 5.3 percent and 4.8 percent on a constant currency basis in the first half and second quarter, respectively, as category softness continues. On a reported basis, revenue declined by 3.0 percent in the first half and 2.1 percent in the second quarter.

“We are pleased to report continued improvement in our Meat Alternative business during the second quarter. Our gross margin expanded over 200 bps, and we achieved positive EBITDA for the quarter after funding A&P investment.

“In July, we saw a modest year-over-year increase in Meat Alternative sales, which was our first growth after several years of decline. While it is just one month, it is an encouraging sign given ongoing category headwinds. We remain focused on stabilizing performance and adapting to evolving consumer preferences,” Soesanto said.