Monde Nissin Corp., maker of Lucky Me! instant noodles, posted an 11 percent increase in first-quarter core profit as solid domestic demand and turnaround in its meat-substitute business offset persistent inflationary pressures

In a media and analysts’ briefing, Henry Soesanto, Monde Nissin chief executive officer, said attributable core net income rose to ₱3.3 billion in the three months of the year from the same period last year.

Reported net income surged 34 percent to ₱3.7 billion, boosted by foreign-exchange gains and a ₱210 million non-cash gain from fair value adjustments on its meat alternative guaranty asset, reversing a ₱290 million loss a year earlier.

Consolidated revenue climbed 9.1 percent to ₱22.8 billion, driven by its dominant Asia-Pacific branded food and beverage division. Net sales for that unit grew 8.6 percent to ₱19.1 billion, spurred by higher sales volumes across all product categories.

Within the division, domestic sales increased 9.5 percent to ₱18.1 billion, helping to cushion a 5.1% percent decline in international sales.

Henry Soesanto, Monde Nissin chief executive officer, said the company’s regional branded food business delivered robust top-line growth, with sequential improvements in gross margin showing progress despite macroeconomic headwinds.

First-quarter gross profit rose 8.3 percent to ₱7.1 billion, tracking the revenue gains. While the gross margin dipped by 10 basis points year-on-year, it expanded by 236 basis points from the previous quarter to 37 percent, aided by price hikes and cost-control measures.

Core earnings before interest, taxes, depreciation, and amortization rose two percent to ₱4.6 billion, as gross profit gains were tempered by higher operating expenses.

The company's meat alternative business, which has struggled in recent quarters amid cooling global demand for plant-based proteins, showed signs of stabilization. Revenue for the segment grew 1.4 percent on a constant-currency basis, translating to an 11.7 percent gain on a reported basis due to weakness in the peso.

Gross profit for the meat alternative unit jumped 54 percent to ₱1.2 billion, and its gross margin widened by 881 basis points to 31.8 percent, supported by restructuring benefits, lower inventory levels, and targeted pricing.

The segment's core EBITDA reached ₱325 million, up from ₱140 million a year earlier, despite increased marketing spend.

While Soesanto welcomed the positive operating income and margin recovery in the alternative-meat unit, he expressed caution over the remainder of the year.

He said Monde Nissin remains mindful of ongoing market uncertainties and inflation, adding that the company will manage its operations prudently and remain sensitive to consumer spending power when considering future price adjustments.