Monde Nissin says noodle sales begin to recover

By Jenniffer B. Austria

Noodle and biscuit maker Monde Nissin Corp. said its noodle business is starting to recover following a sharp decline in market share in the third quarter following a product recall by some European countries.

Monde Nissin said in a statement Thursday domestic noodles registered a strong recovery, with October average daily sales volume up 21 percent and net invoiced sales value up 32 percent month-on-month.

Monde Nissin chief executive Henry Soesanto said the company’s efforts largely corrected the negative impact of the product recall on its market share.

Soesanto said that aside from aggressive advertising campaign, the company also enhanced its sourcing, testing and overall processes to ensure that all products adhere to food quality compliance standards, regardless of what jurisdiction they are sold in.

The market share of Lucky Me!, Monde Nissin’s top selling noodle brand, dropped 63.2 percent in the third quarter from 69.9 percent in the same period last year.

Monde Nissin reported a 46-percent decline in third quarter net income to P1.55 billion from the same period last year. Net sales in the third quarter were flat at P17.7 billion.

“Despite continued strong revenue growth for biscuits and other categories, our Q3 noodle sales have been affected by July’s selective recall in the EU, and this translated into flat overall revenues for the third quarter,” Soesanto said.

Net income attributable to shareholders of the parent company dropped 20.9 percent in the first nine months to P5.6 billion on lower gross profit, increased logistical costs and investments in organizational resources.

Consolidated revenue in the first nine months climbed 6.7 percent to P54.9 billion.

The company said its alternative meat business saw a 7.1-percent growth in revenue and increased market share despite the difficult retail environment, while its foodservice sustained its strong momentum.

“We realize that market conditions today are very challenging and there is a need to adjust to the current realities despite our view on the longer-term attractiveness of the category. As such, we are implementing a number of restructuring and efficiency measures,” Soesanto said.