Monde Nissin Corp. · PSE:MONDE
Monde Nissin — Q1 2024 Earnings Presentation
27 slides from Monde Nissin's earnings presentation, May 8, 2024
Slide 1: Q1 2024 Earnings Presentation
Q1 2024 Earnings Presentation May 8, 2024
Slide 2: First Quarter 2024 Financial Performance: Consolidated & APAC BFB
First Quarter 2024 Financial Performance Consolidated & APAC BFB 2
Slide 3: Consolidated core net income growth of +53.4% in the first quarter driven by gross margin expansion in APAC BFB
Consolidated core net income growth of +53.4% in the first quarter driven by gross margin expansion in APAC BFB • Modest revenue growth PHP mn Q1 2024 Reported Change YoY Comparable4 Change YoY partly due to fewer selling days in APAC BFB and Net Sales 20,312 +1.3% +2.1% continued softness in Meat A
Slide 4: APAC BFB: Revenue growth despite strong base, gross margin improvement of +741 bps
APAC BFB: Revenue growth despite strong base, gross margin improvement of +741 bps year-on-year, all-time high core net income • Revenue increase of PHP mn +2.2%, impacted by fewer Q1 2024 Reported Change YoY selling days due to the timing of the Holy Week holiday in the Philippines Net Sales 16,883
Slide 5: APAC BFB: Sales growth driven by carry-over pricing as volume growth softened
APAC BFB: Sales growth driven by carry-over pricing as overall volume growth softened due to lower selling days; like-for-like1 volume increased +3.1% Revenue Growth Breakdown APAC BFB Noodles Biscuits Others2 Q1 Year-on-Year +2.2% +0.0% +1.0% +9.5% Net Price3 +2.9% +3.2% +3.7% +0.8% Volume/Mix (Lik
Slide 6: APAC BFB: Initiatives underway to sustain strong share in Noodles and address Biscuits
APAC BFB: Initiatives underway to sustain strong share in Noodles and address share challenges in Biscuits Noodles Biscuits Others Others #1 Oyster Sauce #1 #2 67.2% 67.3% 59.2% 59.3% 29.0% 28.7% 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 Yogurt Drinks #1 89.0% 90.7% 1Q23 1Q24 6 Source: Nielsen Retail Audit (pas
Slide 7: 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 until 3Q24 and palm oil partially secured until 4Q24 Wheat (18% of APAC BFB COGS) Quarterly Comparable Gross Margin Percent Locked In: Q2 2024: 100% Q3 2024: 100% Q4 2024: 50% (for soft whea
Slide 8: First Quarter 2024 Financial Performance: Meat Alternative
First Quarter 2024 Financial Performance Meat Alternative 8
Slide 9: Meat Alternative: Conditions remain challenging, cost and cash remain a key focus
Meat Alternative: Conditions remain challenging, cost and cash remain a key focus • Comparable3 sales grew by 1.6%, reflecting comparable3 and PHP mn Q1 2024 Reported Change YoY Comparable3 Change YoY constant currency sales decline of -4.0% as well as reported volumes that were down -5.9% • Organic
Slide 10: Meat Alternative: Quorn Foods UK retail market share continues to grow
Meat Alternative: Quorn Foods UK retail market share continues to grow alongside strong year-on-year foodservice growth UK Retail Foodservice Total Market Share1 Sales per Day in PHP mn2 32.5% 32.6% 7.3 7.0 6.9 32.2% 32.3% 32.1% 6.5 6.5 31.9% 6.1 6.2 6.2 31.7% 5.8 31.2% 5.3 30.8% 4.2 4.0 29.7% 2.5 4
Slide 11: Q2 2024 Guidance
Q2 2024 Guidance 11
Slide 12: Q2 2024 Guidance
Q2 2024 Guidance APAC BFB Meat Alternative Strong rebound in April Q2 2024 Continuing top line Top Line top line growth due to challenges timing of Holy Week Q2 2024 Continued gross margin improvement year-on-year Profitability due to locked in key commodity costs 12
Slide 13: Appendix
Appendix 13
Slide 14: Key takeaways
Key takeaways Consolidated revenue for the first quarter increased by 2.1% to Php 20.3 bn on a comparable basis, impacted by fewer selling days in APAC 1 BFB due to the timing of the Holy Week holiday in the Philippines. APAC BFB net sales for the first quarter increased by 2.2% to Php 16.9 bn. The
Slide 15: Consolidated P&L Summary
Consolidated P&L Summary PHP mn Q1 2023 Q1 2024 Reported Change YoY Revenue 20,050 20,312 +1.3% Cost of Goods Sold 13,951 13,115 -6.0% Gross Profit 6,099 7,197 +18.0% Core Operating Expenses1 3,355 3,428 +2.2% Core EBITDA2 3,434 4,508 +31.3% Core Net Income3 1,878 2,880 +53.4% Core Net Income at Own
Slide 16: APAC BFB P&L Summary
APAC BFB P&L Summary PHP mn Q1 2023 Q1 2024 Reported Change YoY Revenue 16,525 16,883 +2.2% Cost of Goods Sold 11,376 10,371 -8.8% Gross Profit 5,149 6,512 +26.5% Core Operating Expenses1 2,113 2,530 +19.7% Core EBITDA2 3,550 4,568 +28.7% Core Net Income3 2,198 3,096 +40.9% 1 Core operating expenses
Slide 17: Meat Alternative P&L Summary
Meat Alternative P&L Summary PHP mn Q1 2023 Q1 2024 Reported Change YoY Revenue 3,525 3,429 -2.7% Cost of Goods Sold 2,575 2,744 +6.6% Gross Profit 950 685 -27.9% Core Operating Expenses1 1,242 898 -27.7% Core EBITDA2 (116) (60) N/M Core Net Income3 (320) (216) N/M 1 Core operating expenses = sellin
Slide 18: Meat Alternative: UK inflation slowing but market continues to decline
Meat Alternative: UK inflation slowing but market continues to decline UK Economy Meat Alternative Market4 UK Inflation1 Market Growth 19.2% Quorn Cauldron Other Brands Private Label 16.9% 17.4% +7.7% 14.6% 12.2% 9.8% 7.0% 8.0% 9.4% 10.1% 10.5% 10.1% 4.0% 7.9% 5.9% 6.3% 4.2% 3.8% 1Q22 2Q22 3Q22 4Q22
Slide 19: Cash Flow Summary
Cash Flow Summary PHP mn Q1 2023 Q1 2024 Income before Income Tax 2,462 4,418 Depreciation & Amortization 663 629 Gain on Change in Fair Value of Guaranty Asset - (324) Finance Costs 161 154 Derivative Loss (Gain) 1 (26) Impairment Loss - 17 Working Capital Adjustments (936) (1,838) Others (107) (15
Slide 20: 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 31D 29D 27D 16D 6,877 6,564 1,608 2,105 1Q23 1Q24 1Q23 1Q24 Inventory & Days Inventory Outstanding Accounts Payable1 & Days Payables Outstanding PHP mn PHP mn 69D 77D 64D
Slide 21: Balance Sheet Summary
Balance Sheet Summary PHP mn FY 2023 Q1 2024 PHP mn FY 2023 Q1 2024 Cash and Cash Equivalents 16,679 13,524 Trade and Other Payables 11,684 10,239 Inventories 9,187 9,340 Loans Payable - Current 1,200 1,206 Trade and Other Receivables 6,410 6,564 Long-Term Loan 3,734 1,849 Others 3,814 3,662 Others
Slide 22: Ratios Summary
Ratios Summary Current Ratio Net Debt-to-Equity Ratio Core Net Margin Others 2.18 2.03 14.2% 9.4% 0.15 0.12 Dec 2023 Mar 2023 Dec 2023 Mar 2023 Q1 2023 Q1 2024 Current ratio = Current assets / Current liabilities Net debt-to-equity ratio = (Total liabilities – Cash and cash equivalents) / Equity att
Slide 23: 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 7,211 1,000 5,216 4,432 3,753 1,817 3,660 3,641 2,373 1,031 6,211 1,522 1,784 3,399 2,610 2,138 1,969 2,059 2019 2020 2021 2022 2023 2024E APAC BFB Meat Alternative 23
Slide 24: 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 25: JUR CURE ORATE:
JUR CURE ORATE: ASEIRATION
Slide 26: 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 27: 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/ 27