Food and beverage manufacturer Monde Nissin Corporation expects strong earnings growth for 2024, driven by record revenues, despite ongoing challenges in its meat alternative business.

Based on preliminary and unaudited financial results disclosed to the Philippine Stock Exchange, the company anticipates consolidated core net income to increase by over 25 percent in 2024, with consolidated core net margin expanding by more than 200 basis points (bps) compared to the same period last year.

Consolidated sales growth is projected to exceed three percent year-on-year on a comparable basis, along with consolidated gross margin expansion of over 350 bps. This growth is expected to be fueled by strong gross margin growth in the Asia-Pacific branded food and beverage (APAC BFB) segment of over 400 bps. The meat alternative business' earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to be neutral for the full year.

"I am pleased to announce that our preliminary fourth quarter results reflect sustained momentum from the third quarter, driven by our APAC BFB business. This has resulted in record-high revenues for both the quarter and the year," said Monde Nissin Chief Executive Officer Henry Soesanto.

The APAC BFB business achieved strong revenue growth in the fourth quarter, up over eight percent year-over-year and more than four percent sequentially, reaching the upper end of the company’s guidance. This growth was driven by volume growth across all categories, with contributions from both domestic and international markets.

Monde Nissin's market share in the noodles category increased by 140 bps to 68.7 percent in value and by 150 bps to 74 percent in volume over the 12-week period ending December 2024. The company also observed a gross margin expansion of over 100 bps year-over-year in the fourth quarter.

"Our meat alternative business continues to operate in a challenging environment, as we expect an approximate mid-teens sales decline year-on-year on a constant currency and comparable basis for the fourth quarter, partly due to fewer selling weeks compared to last year," the company said. "We expect to achieve positive EBITDA in the fourth quarter despite the ongoing topline weakness."

The company noted, "Our ongoing annual impairment test for the meat alternative business indicates a significant impairment charge this year, estimated between GBP80 million and GBP100 million. Although substantial, this figure is notably lower than last year's impairment."

Additionally, due to unfavorable changes in volatility, interest rates, and stock prices, Monde Nissin anticipates a material mark-to-market loss on the fair value of its guaranty asset.

However, despite these challenges—the impairment and the mark-to-market loss—the company expects its consolidated reported net income after tax to return to positive territory for the full year.

It also expects to have sufficient retained earnings, providing flexibility to declare dividends, subject to board approval.

Monde Nissin will disclose its audited 2024 financial results in March 2025.