Local mart keeps PH food firm biz afloat

Filipino food manufacturer Monde Nissin Corporation has kept its business afloat despite increasing prices of raw materials brought by developments outside the country.

In a media briefing, Monde Nissin chief financial officer Jesse Teo said supply bottlenecks and rapid increase in input costs cut the company’s profit in the first quarter of the year.

“Input costs have increased well over 20 percent for the key region. For the key raw materials that we have from oil and meat, for every 10 percent increase of that, it’s a 1.5 percent margin hit to our business,” Teo said.

The listed firm reported a 7.2-percent increase in consolidated revenues from January to March 2022 period amounting to PHP18.3 billion. Its net income declined by 13.5 percent to PHP2.1 billion in the same period.

Company chief executive officer Henry Soesanto said they remain optimistic about its business but will continue to monitor risks brought by increasing commodity prices.

“While we had a strong start to the year and remain optimistic about the continuation of the growth we are seeing, commodity inflation remains a concern for our APAC BFB (Asia-Pacific Branded Food and Beverage) business and it is something that we will proactively respond to as the year progresses,” Soesanto said.

Teo said the availability of shipping containers due to pandemic-related restrictions in China is dragging the company’s international business.

“Our products have momentum just before the shipping container crisis happened, and we expect to be able to pick up where we left off once the crisis is done. Our domestic business, which is part of the international though, is doing quite well. It’s growing and it’s growing through share growth,” Teo said. “But we like to see these smaller businesses become a growth driver for us.”

Source: Philippines News Agency

Related posts