The Market Monitor Minding the Nation's Business
Monde Nissin Corporation reported strong financial results for the nine months ended September 30, 2026 (9M 2026), with consolidated revenue rising 7.3% year-on-year to Php 67.9 billion and third-quarter revenue advancing 8.2% to Php 23.6 billion. Driven by improved gross profit across its business segments, 9M core net income attributable to shareholders jumped 16.1% to Php 8.3 billion (Php 2.9 billion in Q3, up 16.2%). Reported net income rose 20.8% to Php 8.1 billion for the nine-month period, though Q3 reported net income grew a modest 0.5% to Php 2.3 billion due to a Php 513 million non-cash fair value loss on the Protein business guaranty asset. Reflecting confidence in its cash generation, the Board of Directors approved an 8.3% increase in its cash dividend to Php 0.26 per common share, payable on December 23, 2026, to stockholders of record as of November 25, 2026.
The Asia-Pacific Branded Food and Beverage (APAC BFB) segment continued to anchor the company’s top line, recording 9M net sales growth of 6.5% to Php 56.8 billion and Q3 growth of 7.7% to Php 19.8 billion. This performance was supported by volume and pricing gains in biscuits and strategic growth categories, alongside a 6.7% nine-month expansion in the domestic business to Php 53.5 billion. Segment gross profit climbed 9.6% to Php 20.3 billion for the nine-month period, with gross margins expanding by 101 basis points to 35.8%. Pricing actions, cost-management initiatives, and lower coconut oil prices helped offset higher packaging, palm oil, and foreign exchange-related input costs, lifting 9M Core EBITDA by 5.9% to Php 12.1 billion.
Meanwhile, the Protein business (Quorn Foods) demonstrated a significant turnaround in profitability. While reported 9M revenue rose 11.6% to Php 11.1 billion largely due to Philippine Peso depreciation, constant-currency revenue grew 2.2%, supported by retail snacking growth in the United Kingdom. More notably, segment gross profit surged 41.3% to Php 3.5 billion in 9M 2026, pushing gross margins up by 664 basis points to 31.6% on the back of transformation benefits, targeted price increases, and a stronger product mix. As a result, Protein’s 9M Core EBITDA more than doubled (+115.4%) to Php 904 million, and EBIT swung from a Php 79 million loss last year to a positive Php 319 million—marking its third consecutive quarter of positive operating profit.
Monde Nissin maintained a healthy balance sheet and robust cash flow generation throughout the period. Operating cash flow reached Php 11.0 billion for the first nine months of 2026, up from Php 8.7 billion in the prior year, helping cash and cash equivalents grow to Php 16.2 billion against total outstanding debt of Php 2.4 billion and a low net debt-to-equity ratio of 0.08. Looking ahead, CEO Henry Soesanto noted that while the company remains vigilant regarding input cost volatility, foreign exchange movements, and geopolitical risks such as the ongoing Middle East crisis, it will continue relying on disciplined cost management and measured pricing to sustain growth.