Monde Nissin Corp. posted a 16 percent increase in first-half core net income to ₱5.5 billion, propelled by stronger gross profit margins and favorable foreign-exchange movements that offset rising energy costs linked to Middle East geopolitical friction.

In a disclosure to the Philippine Stock Exchange, the maker of Lucky Me! instant noodles and Quorn meat alternatives said second-quarter core attributable net profit jumped 23.6 percent to ₱2.2 billion.

The growth was bolstered by a foreign-exchange gain, reversing a currency loss recorded in the same period last year.

Reported net income for the six months through June rose 31 percent to ₱5.8 billion, while second-quarter reported profit gained 26.4 percent to ₱2.1 billion.

Consolidated revenue expanded 6.8 percent to ₱44.3 billion in the first half and advanced 4.6 percent to ₱21.5 billion during the second quarter.

The Asia-Pacific Branded Food and Beverage unit, Monde Nissin’s primary revenue driver, saw first-half net sales climb 5.9 percent to ₱36.9 billion. Second-quarter sales for the division rose 3.1 percent to ₱17.8 billion, supported by higher volume in its biscuits and strategic expansion categories. Domestic sales gained 6.4 percent to ₱35 billion in the first half and 3.4 percent to ₱16.9 billion in the second quarter.

“Disciplined pricing, cost management, and hedging supported strong year-on-year gross margin expansion,” Henry Soesanto, Monde Nissin chief executive officer, said.

However, gross margin narrowed by 203 basis points quarter-on-quarter due to the normalization of promotional contra-revenue items and elevated manufacturing expenses.

Soesanto cited higher fuel and utility rates resulting from the Middle East conflict, alongside increased logistics costs, as primary operational drags. Profits were cushioned by benefits from the company’s US dollar hedging positions.

The meat-substitute unit, Quorn Foods, showed signs of operational recovery. Constant-currency revenue for the protein division increased 2.2 percent in the first half and 2.7 percent in the second quarter, driven by demand for snacking products in the UK retail market.

On a reported basis, boosted by the depreciation of the Philippine peso against foreign currencies, protein revenue grew 12 percent to the end of June and 12.3 percent in the second quarter.

The protein segment expanded its gross margin by nearly 500 basis points in the second quarter, pushing its first-half core earnings before interest, taxes, depreciation, and amortization above its total core EBITDA for the entire previous year.

Monde Nissin warned that input cost pressures remain an ongoing risk, indicating that further retail price adjustments may be considered if raw material and energy inflation persist. (James A. Loyola)