Monde Nissin Corp. · PSE:MONDE
Monde Nissin — H1 2022 Earnings Presentation
34 slides from Monde Nissin's earnings presentation, Aug 10, 2022
Slide 1: SEC Form 17-C Current Report
C06129-2022 SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-C CURRENT REPORT UNDER SECTION 17 OF THE SECURITIES REGULATION CODE AND SRC RULE 17.2(c) THEREUNDER 1. Date of Report (Date of earliest event reported) Aug 10, 2022 2. SEC Identification Number 0000086335 3. BIR Tax Identification No. 000-41
Slide 2: PSE Disclosure Form 4-30 - Material Information
® Monde Nissin Monde Nissin Corporation MONDE PSE Disclosure Form 4-30 - Material Information/Transactions References: SRC Rule 17 (SEC Form 17-C) and Sections 4.1 and 4.4 of the Revised Disclosure Rules Subject of the Disclosure Monde Nissin posts 18.9% revenue growth in its domestic business for Q
Slide 3: SEC Form 17-C Current Report
SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-C CURRENT REPORT UNDER SECTION 17 OF THE SECURITIES REGULATION CODE AND SRC RULE 17.2(c) THEREUNDER 1. August 10, 2022 Date of Report (Date of earliest event reported) 2. SEC Identification Number 0000086335 3. BIR Tax Identification No. 000-417-352-000
Slide 4: Gross profit grew by 1.2% to Php 12.8 bn in the first half
Gross profit grew by 1.2% to Php 12.8 bn in the first half and 7.4% to Php 6.3 bn in Q2, due to gross profit improvements in the APAC BFB business. Gross margin for the first half, however, declined by 300 bps year-on-year to 34.4% due to elevated input costs, partly covered through price increases
Slide 5: 1H 2022 Earnings Presentation
1H 2022 Earnings Presentation August 10, 2022
Slide 6: Lucky Me! safe for consumption; ongoing implementation of action plans
Lucky Me! safe for consumption; ongoing implementation of action plans Action plans Supply Chain • Strengthen our understanding of the regulations in every territory that we want to export to and evaluate our export policies • Work with our suppliers to institute testing at key points throughout our
Slide 7: First Half 2022 Financial Performance: Consolidated & APAC BFB
First Half 2022 Financial Performance Consolidated & APAC BFB 3
Slide 8: Consolidated revenue grew double digits in 1H and Q2
Consolidated revenue grew double digits in 1H and Q2; core net margin at ownership dip mitigated by good sales performance and cost containment measures PHP mn Reported Reported Q2 2022 1H 2022 • Revenue growth driven by pricing and Change YoY Change YoY volume increases in APAC BFB domestic Net Sal
Slide 9: APAC BFB: Strong sales performance due to 18.9% Q2 growth in the Domestic business
APAC BFB: Strong sales performance due to 18.9% Q2 growth in the Domestic business • Pricing and volume increased across all PHP mn Reported Reported Q2 2022 1H 2022 categories Change YoY Change YoY • Biscuits continued strong recovery, benefitting from economic reopening Net Sales 15,171 +18.1% 29,
Slide 10: APAC BFB: Q2 grows year-on-year and quarter-on-quarter
APAC BFB: Q2 grows year-on-year and quarter-on-quarter due to price and volume increases Historical Sales Q2 Growth Breakdown +6.8% 3-year CAGR +18.1% +18.1% YoY YoY +4.3% QoQ 15,171 +10.4% +0.4% 15,171 +2.5% +0.6% 14,539 +7.3% 12,457 12,774 12,845 12,845 Q2 2019 Q2 2020 Q2 2021 Q1 2022 Q2 2022 Q2 2
Slide 11: APAC BFB: Continued market leadership reflects strength of brands
APAC BFB: Continued market leadership reflects strength of brands and consumer trust amidst the pandemic Noodles Biscuits Others Others Oyster Sauce #1 #1 #1 59.0% 61.2% 70.5% 66.6% 30.1% 28.6% 2Q21 2Q22 Yogurt Drinks #1 2Q21 2Q22 2Q21 2Q22 90.2% 86.0% More focused and wider 1 assortment in downline
Slide 12: APAC BFB: Commodity pressures tapered, margin recovery for the long term
APAC BFB: Commodity pressures tapered, margin recovery for the long term Wheat1 14 • Wheat secured until 4Q22, crude palm oil until 1Q23 12 • Falling commodity prices provide favorable 10 margin support in the longer term; however, USD minimal impact in the short term 8 +22% 6 from Jun 2021 to Jun 2
Slide 13: First Half 2022 Financial Performance: Meat Alternative
First Half 2022 Financial Performance Meat Alternative 9
Slide 14: Meat Alternative: Core EBITDA stable with 1Q22; margins lower due to cost inflation
Meat Alternative: Core EBITDA stable with 1Q22; margins lower due to cost inflation • Reported sales dropped by 3.5% in Q2 PHP mn Reported Reported • Sales volumes declined by 7.9%, while Q2 2022 1H 2022 Change YoY Change YoY retail volume for the category was down by 13.4% • Foodservice growth of 4
Slide 15: Meat Alternative: Near-term business objectives focus on maintaining a profitable business
Meat Alternative: Near-term business objectives focus on maintaining a profitable business ready for when economic stability returns Actions Delivered in 1H Focus for 2H Price • Price increases delivered across the • 2nd price increase for the UK delivered in May/June UK, US, Foodservice, QSR • Furt
Slide 16: Meat Alternative: UK retail brand metrics continue to improve
Meat Alternative: UK retail brand metrics continue to improve in very challenging market conditions UK (Total) Retail Market Share UK Retail Points of Distribution UK Meat Free Market Share Quorn Foods Distribution continues to Build 33.1% 32.1% 30.6% 31.0% 31.2% +16.1% 30.3% 30.1% 30.3% 28.9% 135.0
Slide 17: Meat Alternative: US shows signs of progress after 6 months of investment
Meat Alternative: US shows signs of progress after 6 months of investment but not yet in trading performance. We will continue to review and adjust as required Trading Progress 2H Plan Others Frozen Market Share PODs improving following 2021 decline 5.6% 5.7% 5.2% 4.8% 91.0 86.8 3.6% 83.4 2Q21 3Q21
Slide 18: Meat Alternative: Good progress with KFC launches and Foodservice momentum
Meat Alternative: Good progress with KFC launches and momentum building in Foodservice with the best-ever quarter for the UK KFC Foodservice Combined Foodservice & QSR Sales Comparison Sales +51% of pre-covid levels (£m) F19 Quarterly Average F22 Q2 • 1H 2022: KFC launched in the Netherlands, Belgiu
Slide 19: Q&A
Q&A 15
Slide 20: 1H 2022 Earnings Presentation
1H 2022 Earnings Presentation August 10, 2022
Slide 21: Appendix
Appendix 17
Slide 22: Key takeaways
Key takeaways Consolidated revenue increased 10.1% for 1H as growth was sustained in Q2, up 13.1% driven by the strong performance of the APAC 1 BFB domestic business. APAC BFB: Net sales for 1H increased by 13.2% due to the strong performance in Q2 at 18.1% growth. Growth was largely driven by the
Slide 23: Consolidated P&L Summary
Consolidated P&L Summary PHP mn Reported Reported 1H 2021 1H 2022 Q2 2021 Q2 2022 Change YoY Change YoY Revenue 33,759 37,172 +10.1% 16,683 18,874 +13.1% Cost of Goods Sold 21,135 24,401 +15.5% 10,771 12,525 +16.3% Gross Profit 12,624 12,771 +1.2% 5,912 6,349 +7.4% Core Operating Expenses1 6,736 7,3
Slide 24: APAC BFB P&L Summary
APAC BFB P&L Summary PHP mn Reported Reported 1H 2021 1H 2022 Q2 2021 Q2 2022 Change YoY Change YoY Revenue 26,239 29,710 +13.2% 12,845 15,171 +18.1% Cost of Goods Sold 16,689 19,684 +18.0% 8,499 10,140 +19.3% Gross Profit 9,550 10,026 +5.0% 4,346 5,031 +15.8% Core Operating Expenses1 4,214 4,736 +1
Slide 25: Meat Alternative P&L Summary
Meat Alternative P&L Summary PHP mn Reported Reported 1H 2021 1H 2022 Q2 2021 Q2 2022 Change YoY Change YoY Revenue 7,520 7,462 -0.8% 3,838 3,703 -3.5% Cost of Goods Sold 4,446 4,717 +6.1% 2,272 2,385 +5.0% Gross Profit 3,074 2,745 -10.7% 1,566 1,318 -15.8% Core Operating Expenses1 2,522 2,656 +5.3%
Slide 26: Cash Flow Summary
Cash Flow Summary PHP mn 1H 2021 1H 2022 Income before Income Tax 554 5,636 Depreciation & Amortization 1,228 1,323 Interest Expense 1,308 212 Derivative Loss 2,254 - Working Capital Adjustments (1,344) (3,047) Others 1,424 (189) Net Cash Generated from Operations 5,424 3,935 Income Tax Paid & Inter
Slide 27: 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 33D 33D 31D 17D 5,993 6,486 3,027 1,648 1H21 1H22 1H21 1H22 Inventory & Days Inventory Outstanding Accounts Payable & Days Payables Outstanding PHP mn PHP mn 71D 73D 69D 5
Slide 28: Balance Sheet Summary
Balance Sheet Summary PHP mn FY 2021 1H 2022 PHP mn FY 2021 1H 2022 Cash and Cash Equivalents Trade and Other Payables 11,156 10,976 13,857 13,803 Trade and Other Receivables 6,249 6,486 Loans Payable - Current 6,999 5 Inventories 8,572 10,571 Long-Term Loan - 6,903 Others 1,935 2,067 Others 13,287
Slide 29: Ratios Summary
Ratios Summary Current Ratio Core Return on Equity 2.26 1.37 17.5% 11.5% Dec 2021 Jun 2022 Jun 2021 Jun 2022 Debt-to-Equity Ratio Core Return on Assets 8.9% 7.9% 0.46 0.42 Dec 2021 Jun 2022 Jun 2021 Jun 2022 Core Net Margin 12.6% 11.0% Current ratio = Current assets / Current liabilities Debt-to-equ
Slide 30: Making Better Possible
Making Better Possible Product Planet People Planet Making Better Making Eco- Making Inclusivity Making Collective Food Accessibility Efficiency Possible Possible Action Possible Possible We nurture people by Strategic We develop We care for the promoting better Pillars healthier, great- planet by w
Slide 31: Making Better Possible
Making Better Possible Product Planet People Planet Making Better Making Eco- Making Inclusivity Making Collective Food Accessibility Efficiency Possible Possible Action Possible Possible We nurture people by Strategic We develop We care for the promoting better Pillars healthier, great- planet by w
Slide 32: Our Corporate Aspiration
Our Corporate Aspiration We aspire to improve the well-being of people and the planet, and create sustainable solutions for food security 28
Slide 33: 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 34: 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