Betting Ang’s Monde Nissin faces tough 2022: Meat business impairment leads to P13 billion net loss

Lucky Me! Instant noodles maker Monde Nissin Corp., helmed by bilyonaryo Betty Ang, is charting a course towards profitability this year after a bruising net loss in the previous year.

The Filipino food and beverage powerhouse recorded a net loss of P13 billion in 2022, a sharp reversal from the P3.25 billion net income it posted the year before.

The company has identified a non-cash, non-operating impairment of the intangible assets of Marlow Foods, which owns Quorn and Cauldron, as the main cause of the downturn.

The impairment was attributed to the application of a higher discount rate due to prevailing interest rates and risk premiums, as well as margin compression and rationalization of trends in the meat alternative sector.

Henry Soesanto, Monde Nissin’s CEO, acknowledged the setback, saying that while the decision to book the impairment provision was prudent, it was also frustrating, given the impact of global interest rates and risk premiums.

Core net income also fell by 19.6 percent to P6.6 billion, primarily due to lower gross profit, increased logistical costs, and investments in organizational resources, partially offset by an effective US dollar hedge.

However, the company’s revenue rose 6.7 percent to P73.9 billion, buoyed by strong growth in the Asia-Pacific branded food and beverage categories, as well as the recovery of domestic noodles.

Soesanto remains optimistic, noting that the expiration of key commodity price lock-ins in the first half of the year is expected to improve margins and contribute to a return to profitability.

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