Monde Nissin Corp., the food giant behind Lucky Me! noodles, reported a slight dip in full-year core profit as its meat-substitute unit began to show signs of slow recovery.

In a disclosure to the Philippine Stock Exchange (PSE), Monde Nissin said attributable consolidated core net income fell 0.8 percent to ₱9.7 billion for the full year.

Despite the annual decline, earnings in the fourth quarter climbed 8.1 percent to ₱2.5 billion, bolstered by improvements in its alternative protein business and steady growth in its regional food and beverage operations.

The company’s Asia-Pacific Branded Food and Beverage (APAC BFB) unit recorded steady top-line growth in the final three months of the year.

Henry Soesanto, Monde Nissin chief executive officer attributed the performance to volume gains in biscuits and other categories, while noodle revenue rose 3.4 percent on a sequential basis during the fourth quarter.

The manufacturer faced headwinds from higher edible oil costs, which pressured gross margins. To counter these inputs, Monde Nissin implemented pricing actions and cost-saving measures, including product reformulation, which led to a modest sequential improvement in margins.

For the first quarter, the company anticipates mid- to high-single-digit revenue growth in its domestic business, Soesanto said.

Performance in the meat alternative segment, which includes the Quorn brand, showed signs of stabilization. Sales declines on a constant currency basis eased during the fourth quarter, while the gross margin for the unit expanded by more than 500 basis points year-on-year.

While the category remains challenging, the company met its full-year EBITDA guidance and recorded a modest reversal of prior impairment losses, reflecting progress in its ongoing transformation strategy.

Consolidated revenue for the full year rose 4 percent to ₱86.5 billion, while fourth-quarter sales grew 5.7 percent to ₱23.2 billion. Reported net income surged to ₱8.6 billion from ₱450 million a year earlier, largely due to the impairment reversals in the meat alternative business. This bottom-line figure was partially offset by a ₱501 million non-cash loss stemming from a fair value adjustment of a guaranty asset related to the same unit.

The APAC BFB division saw net sales grow 4.7 percent to ₱72.8 billion for the year, with domestic operations rising 5.4 percent. While full-year gross profit for the segment slipped 1.8 percent to ₱25.3 billion, it recovered in the fourth quarter with a 2.9 percent increase.

Meanwhile, Quorn’s full-year revenue fell 2.9 percent on a constant currency basis, though it managed a 33.8 percent surge in fourth-quarter gross profit to ₱1.0 billion as efficiency measures took hold.