Food manufacturer Monde Nissin Corp. saw its earnings fall in 2021 due to rising commodity prices and supply chain disruptions.
In a disclosure to the Philippine Stock Exchange on Thursday, Monde Nissin reported a core net income of P8.2 billion, down 5.4% year-on-year.
The company’s consolidated revenue stood at P69.3 billion, up 2% year-on-year.
“We were able to grow our revenue despite a challenging operating and economic environment that included inflationary cost pressures and supply chain disruptions,” said Monde Nissin CEO Henry Soesanto.
Similarly, the company’s reported net income stood at P3.2 billion, down 60.5% from a year earlier, “primarily due to one-off items related to the Arran convertible note and the IPO (initial public offering).”
The proceeds of Monde Nissin’s IPO at P48.6 billion last year were intended for its capital expenditures of P26.52 billion through 2023, the redemption of a convertible note at P17.31 billion, and the repayment of loans at P16.78 billion.
“[The year] 2021 was a transformative year for Monde Nissin, becoming a publicly listed company with the largest IPO in Philippine history. The strong support [from] a wide range of domestic and international investors provided us with funding to continue our growth and strategic initiatives which we made significant progress on during the year,” Soesanto said.
The company has set aside roughly P9 billion in capital expenditures for 2022, which will mostly be used to expand capacity in its food and beverage business.
As the country faces inflationary pressures due to rising oil prices, Soesanto said that “there is only so much that can be done through supply chain efficiencies, after which there is a mathematical inevitability that we will need to pass on cost increases to our consumers.”
“However, as I have commented before, we are always mindful that our consumers are also hurting due to current inflationary pressures. While further price increases from us seem probable, we are mitigating these by having hedged a significant proportion of our input costs,” he said.
“Additionally, due to the current geopolitical situation in Ukraine, we have taken steps in mitigating potential supply chain disruptions by reviewing our key raw materials and ensuring we maintain higher buffer levels. We will continue to review and take necessary measures as the situation evolves.” —VBL, GMA News
Monde Nissin core net income down 5.4% to P8.2B in 2021
Source: News Panda Philippines
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