Monde Nissin Corp. · PSE:MONDE
Monde Nissin — H1 2024 Earnings Presentation
30 slides from Monde Nissin's earnings presentation, Aug 7, 2024
Slide 1: 1H 2024 Earnings Presentation
1H 2024 Earnings Presentation August 7, 2024
Slide 2: First Half 2024 Financial Performance: Consolidated & APAC BFB
First Half 2024 Financial Performance Consolidated & APAC BFB 2
Slide 3: Consolidated core net income growth of +45.5% in the first half
Consolidated core net income growth of +45.5% in the first half supported by strong APAC BFB core net income growth • Revenue growth driven by 4 4 PHP mn Reported Comparable Reported Comparable volume increase in Q2 2024 1H 2024 Change YoY Change YoY Change YoY Change YoY Noodles and Others categori
Slide 4: Operating cash flow improved +78.2% to PHP 6.0 billion for 1H 2024
Operating cash flow improved +78.2% to PHP 6.0 billion for 1H 2024 In PHP mn 5,987 Parties Involved Coverage 3,360 Accounting Treatment 1H23 1H24 4
Slide 5: APAC BFB: Revenue growth from volumes, gross margin improvement
APAC BFB: Revenue growth from volumes, first half gross margin improvement of +576 bps year-on-year resulting in strong core net income growth • Revenue growth largely PHP mn driven by volume growth in Q2 2024 Reported Change YoY 1H 2024 Reported Change YoY Noodles and Others categories • 1H gross m
Slide 6: APAC BFB: Sales growth driven by solid volume growth
APAC BFB: Sales growth driven by solid volume growth in Noodles and Others categories Revenue Growth Breakdown APAC BFB Noodles Biscuits Others2 Q2 Year-on-Year +5.7% +8.3% -2.0% +12.9% Net Price1 +0.0% -1.7% +2.3% +0.0% Volume/Mix +5.7% +10.0% -4.2% +12.9% 1H Year-on-Year +3.9% +3.9% -0.5% +11.2% N
Slide 7: APAC BFB: Initiatives to sustain strong shares in Noodles and Others
APAC BFB: Initiatives underway to sustain strong shares in Noodles and Others categories, and address share challenges in Biscuits Noodles Biscuits Others Others #1 Oyster Sauce #1 #2 66.9% 67.8% 56.9% 59.8% 28.5% 28.4% 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 Yogurt Drinks #1 89.2% 91.1% Lucky Me! Kasalo Pack
Slide 8: APAC BFB: Commodity price lock ins in 2024 to sustain gross margin recovery
APAC BFB: Commodity price lock ins in 2024 to sustain gross margin recovery year-on-year; wheat fully secured through 4Q24 and palm oil partially secured through 4Q24 Wheat (17% of 1H APAC BFB COGS) Year-on-Year Gross Margin Percent Locked In: Q3 2024: 100% Q4 2024: 100% +406 bps YoY Q1 Q2 Q3 Q4 Q1
Slide 9: First Half 2024 Financial Performance: Meat Alternative
First Half 2024 Financial Performance Meat Alternative 9
Slide 10: Meat Alternative: Gross margin progression in a challenging market
Meat Alternative: Gross margin progression in a challenging market; strong cost control in operation and cash remains a key focus • Q2 comparable3 sales declined by -6.4% on a constant currency basis • Volume decreased -4.7% (c.-9% PHP mn Reported Comparable4 Reported Comparable4 Q2 2024 1H 2024 if
Slide 11: Meat Alternative: Quorn Foods market share down -10 bps versus 2Q23
Meat Alternative: Quorn Foods market share down -10 bps versus 2Q23, with continued strong foodservice growth year-on-year UK Retail Foodservice Total Market Share1 Sales per Day in PHP mn 7.3 7.4 32.4% 32.4% 7.0 7.0 32.1% 32.1% 32.0% 6.5 6.5 31.8% 6.1 6.2 6.2 31.6% 31.7% 5.8 31.2% 5.3 30.8% 4.0 4.2
Slide 12: Consolidated Total Comprehensive Income & FY 2024 Guidance
Consolidated Total Comprehensive Income & FY 2024 Guidance 12
Slide 13: Total comprehensive income grew +46.2% in 1H and +5.7% in Q2
Total comprehensive income, which includes cumulative translation adjustments, grew +46.2% in 1H and +5.7% in Q2 • Decline in Q2 reported net income due to a non-cash PHP mn Q2 2024 Reported Change YoY 1H 2024 Reported Change YoY accounting loss of PHP 1.5 billion on the fair value of the Meat Alter
Slide 14: FY 2024 Guidance
FY 2024 Guidance APAC BFB Meat Alternative Noodles & Biscuits: mid-single-digit growth FY 2024 Continuing top line Top Line Culinary & Beverages: challenges double-digit growth Total Philippine business grew +10% in July, with flagship biscuit brand growing +19% versus year ago. FY 2024 Continued gr
Slide 15: APAC BFB: Monde Nissin enters ready-to-drink chocolate milk market
APAC BFB: Monde Nissin enters the ready-to-drink chocolate milk market with Monde Nuvi Chocolate Milk Drink with Nata de Coco • Monde Nuvi Chocolate Milk Drink with Nata de Coco is the first chocolate milk drink in the Philippines with nata de coco • Monde Nuvi is a co- branded product with Nuvi fro
Slide 16: Appendix
Appendix 16
Slide 17: Key takeaways
Key takeaways 1 Consolidated revenue for the first half increased by 3.1% to Php 40.1 bn on a comparable basis, with second quarter growth at 4.2%. APAC BFB net sales for the first half grew by 3.9% year-on-year to Php 33.3 bn, while it rose by 5.7% in the second quarter, largely driven by 2 volume
Slide 18: Consolidated P&L Summary
Consolidated P&L Summary PHP mn Reported Reported 1H 2023 1H 2024 Q2 2023 Q2 2024 Change YoY Change YoY Revenue 39,193 40,136 +2.4% 19,143 19,824 +3.6% Cost of Goods Sold 27,225 26,200 -3.8% 13,274 13,085 -1.4% Gross Profit 11,968 13,936 +16.4% 5,869 6,739 +14.8% Core Operating Expenses1 7,031 7,252
Slide 19: APAC BFB P&L Summary
APAC BFB P&L Summary PHP mn Reported Reported 1H 2023 1H 2024 Q2 2023 Q2 2024 Change YoY Change YoY Revenue 32,100 33,341 +3.9% 15,575 16,458 +5.7% Cost of Goods Sold 21,940 20,868 -4.9% 10,564 10,497 -0.6% Gross Profit 10,160 12,473 +22.8% 5,011 5,961 +19.0% Core Operating Expenses1 4,730 5,338 +12
Slide 20: Meat Alternative P&L Summary
Meat Alternative P&L Summary PHP mn Reported Reported 1H 2023 1H 2024 Q2 2023 Q2 2024 Change YoY Change YoY Revenue 7,093 6,795 -4.2% 3,568 3,366 -5.6% Cost of Goods Sold 5,285 5,332 +0.9% 2,710 2,588 -4.5% Gross Profit 1,808 1,463 -19.1% 858 778 -9.3% Core Operating Expenses1 2,301 1,914 -16.8% 1,0
Slide 21: Meat Alternative: Inflationary pressures ease but interest rates remain elevated
Meat Alternative: Inflationary pressures continue to ease but interest rates remain elevated; Meat Alternative market trajectory unchanged UK Economy Meat Alternative Market4 UK Inflation1 Market Growth 19.2% Quorn Cauldron Other Brands Private Label 16.9% 17.4% 14.6% 12.2% 9.8% 7.0% 8.0% -7.2% Mark
Slide 22: Cash Flow Summary
Cash Flow Summary PHP mn 1H 2023 1H 2024 Income before Income Tax 4,558 5,762 Depreciation & Amortization 1,376 1,275 Fair Value Loss on Guaranty Asset - 1,218 Finance Costs 315 344 Finance Income (172) (271) Working Capital Adjustments (1,793) (918) Others (46) (41) Net Cash Generated from Operatio
Slide 23: Free Cash Flow & Working Capital
Free Cash Flow & Working Capital Free Cash Flow & Conversion Cycle Days Trade Receivables & Days Sales Outstanding PHP mn PHP mn 32D 31D 29D 17D 6,577 6,208 5,735 3,000 1H23 1H24 1H23 1H24 Inventory & Days Inventory Outstanding Accounts Payable1 & Days Payables Outstanding PHP mn PHP mn 73D 77D 65D
Slide 24: Balance Sheet Summary
Balance Sheet Summary PHP mn FY 2023 1H 2024 PHP mn FY 2023 1H 2024 Cash and Cash Equivalents 16,679 12,989 Trade and Other Payables 11,684 9,367 Inventories 9,187 9,438 Loans Payable - Current 1,200 1,260 Trade and Other Receivables 6,410 6,208 Long-Term Loan 3,734 1,945 Others 3,814 3,672 Others 8
Slide 25: Ratios Summary
Ratios Summary Current Ratio Net Debt-to-Equity Ratio Core Net Margin Others 2.22 2.03 12.7% 8.9% 0.15 0.12 Dec 2023 Jun 2024 Dec 2023 Jun 2024 1H 2023 1H 2024 Current ratio = Current assets / Current liabilities Net debt-to-equity ratio = (Total liabilities – Cash and cash equivalents) / Equity att
Slide 26: 2024 CapEx plan to focus on building capacity and capability for APAC BFB
2024 CapEx plan to focus on building capacity and capability for APAC BFB In PHP mn 5,927 5,216 1,000 4,432 3,753 1,817 3,660 3,641 2,373 1,031 1,522 1,784 4,927 3,399 2,610 2,138 1,969 2,059 2019 2020 2021 2022 2023 2024E APAC BFB Meat Alternative 26
Slide 27: Making Better Possible
Making Better Possible yy» STRATEGIC PILLARS: PRIORITY UNSDGs NORTH STAR TARGETS OTHER UN SDGs SUPPORTED PRODUCT PLANET Making Better Food Making Eco-efficiency Making Inclusivity Accessibility Possible Possible Possible Monde Nissin develops Monde Nissin cares forthe Monde Nissin nurtures healthier
Slide 28: Our Corporate Aspiration
JUR CURE ORATE: ASEIRATION
Slide 29: Legal Disclaimer
Legal Disclaimer Monde Nissin Corporation (“MONDE”) makes no warranties or representations with respect to the accuracy or completeness of the contents of this presentation, and disclaims any liability whatsoever for any loss arising from or in reliance, in full or in part, of the contents of this p
Slide 30: Investor relations contact details
investor.relations@mondenissin.com www.linkedin.com/company/monde-nissin-corporation/ +63 2 7759 7519 / +63 2 7759 7577 www.facebook.com/Monde-Nissin-Corporation https://mondenissin.com/ Santa Rosa City, Laguna, Philippines https://edge.pse.com.ph/ 30