Monde Nissin Corp. · PSE:MONDE
Monde Nissin — Q1 2023 Earnings Presentation
37 slides from Monde Nissin's earnings presentation, May 15, 2023
Slide 1: SEC Form 17-C Current Report
C03855-2023 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) May 15, 2023 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 Earnings Call/Briefing Materials for MONDE's 2023 1Q Results Backgroun
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. May 15, 2023 Date of Report (Date of earliest event reported) 2. SEC Identification Number 0000086335 3. BIR Tax Identification No. 000-417-352-000 4.
Slide 4: Monde Nissin Corporation Issuer Signature
MONDE NISSIN CORPORATION Issuer Ye" 9 [Pl Michael Paska Chief Investor Relations Officer May 15, 2023 Date
Slide 5: Q1 2023 Earnings Presentation
Q1 2023 Earnings Presentation May 15, 2023
Slide 6: First Quarter 2023 Financial Performance: Consolidated & APAC BFB
First Quarter 2023 Financial Performance Consolidated & APAC BFB 2
Slide 7: Consolidated revenue grew +10.9% year-on-year on a comparable basis
Consolidated revenue grew +10.9% year-on-year on a comparable basis, achieving new record-high quarter PHP mn Reported Comparable4 • Comparable4 revenue increased +10.9% due Q1 2023 Change YoY Change YoY to pricing actions and solid volume growth across all categories in APAC BFB Net Sales 20,050 +9
Slide 8: APAC BFB: Growth in Noodles, Biscuits, and Others boost top line
APAC BFB: Growth in Noodles, Biscuits, and Others categories boost top line • Pricing and volume increase across all categories drive comparable3 revenue growth PHP mn Reported Comparable3 Q1 2023 of +15.4% Change YoY Change YoY • Comparable3 core gross profit improvement of +7.7% due to volume grow
Slide 9: APAC BFB: Q1 growth driven by price increases and volume growth
APAC BFB: Q1 growth driven by price increases and volume growth in all categories Revenue Growth Breakdown APAC BFB Noodles Biscuits Others1 Q1 Year-on-Year Reported +13.7% +8.1% +17.4% +22.4% PFRS 15 Adjustment in 1Q22 +1.7% +1.8% +1.5% +1.6% Q1 Year-on-Year Comparable +15.4% +9.9% +18.9% +24.0% Ne
Slide 10: APAC BFB: Initiatives to support and strengthen market positions
APAC BFB: Initiatives in place to support and strengthen market positions across categories Noodles Biscuits Others Others #1 Oyster Sauce #1 67.9% #2 66.6% 60.9% 60.1% 29.5% 28.7% 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 Past 4 Weeks Market Share by Month Yogurt Drinks #1 68.0% 67.4% 66.0% 64.5% 64.6% 89.5% 8
Slide 11: APAC BFB: Fully recovered in Domestic Noodles
APAC BFB: Fully recovered in Domestic Noodles with 9% volume growth versus Q4 and 20% growth versus pre-pandemic level Noodles Quarter-to-Date Net Sales in KG Q1’17 Q2 Q3 Q4 Q1’18 Q2 Q3 Q4 Q1’19 Q2 Q3 Q4 Q1’20 Q2 Q3 Q4 Q1’21 Q2 Q3 Q4 Q1’22 Q2 Q3 Q4 Q1’23 7
Slide 12: APAC BFB: Delayed depletion of elevated locked-in commodity costs
APAC BFB: Delayed depletion of elevated locked-in commodity costs; further margin recovery for the long term Wheat • Conservative measures taken in 1H 2022 to Cost avoidance secure supply due to extremely volatile business environment • Effect of tapered commodity pressures delayed due to temporary
Slide 13: First Quarter 2023 Financial Performance: Meat Alternative
First Quarter 2023 Financial Performance Meat Alternative 9
Slide 14: Meat Alternative: A challenging quarter with organic sales -4.3%
Meat Alternative: A challenging quarter with organic sales -4.3% year-on-year • Reported sales declined by -6.2% and organic PHP mn Q1 2023 Reported Change YoY sales declined by -4.3% on volumes that were down -14.2% • Retail sales declined by -8.1% (reported) with UK share improving to 32.6% from N
Slide 15: Meat Alternative: The UK market remains challenging
Meat Alternative: The UK market remains challenging… UK Economy* Meat Alternative Market** UK Inflation Total Market Growth 19.2% Quorn Other Brands Private Label 16.9% 14.6% -1.9% 9.8% 7.0% 10.1% 10.5% 10.1% Market 9.4% -10.3% 5.9% -10.5% 1Q22 2Q22 3Q22 4Q22 1Q23 Food Inflation General Inflation (C
Slide 16: Meat Alternative: Quorn performs ahead of the competition
Meat Alternative: …but Quorn continues to perform ahead of the competition with share now at 32.6% up from 30.8% a year ago Market Share* Distribution Total Market Share Quorn Foods PODs (000s) 32.6% +19.1% 32.3% 31.7% 140 153 158 164 166 166 31.2% 30.8% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 PODs Year-on-Ye
Slide 17: Meat Alternative: USA market and share decline continue
Meat Alternative: The USA market and share decline continue; restructuring complete with focus on consumer activation and protecting distribution Market & Share* Growth by Selected Competition and Market US Grocery Frozen Share MSF/Boca/ Quorn Imp/Bynd Gardein Others 5.3% 51% 4.6% -4% -10% 1Q22 1Q23
Slide 18: Meat Alternative: Foodservice/QSR delivers +4.6% reported growth
Meat Alternative: Foodservice/QSR delivers +4.6% reported growth in the face of a challenging landscape Reported Sales* Growth drivers Average per Day in PHP mn 7.2 • 2022 benefits from lapping covid affected 2021 6.8 6.4 6.2 6.2 • 1Q23 performance includes : 5.6 • Impact of UK economic conditions i
Slide 19: Meat Alternative: Addressing our cost base
Meat Alternative: We are addressing our cost base in the face of significant retail market contraction whilst ensuring we protect the growth elements of our business (FS/QSR) In GPB mn • c.60 full-time employees savings across 8-10 • Supply chain (c.30) plus agency staff • Commercial and admin (c.20
Slide 20: Corporate Matters
Corporate Matters Consolidated 16
Slide 21: Plan for equity infusion of up to GBP 40 mn into UK entity
Plan for equity infusion of up to GBP 40 mn into UK entity to pay down existing debt to better reflect current asset value and lower interest expense, and cover restructuring costs Organizational Structure Use of Proceeds Monde Nissin Corporation Partial repayment of sterling 1 100% term loan (GBP 3
Slide 22: Q&A
Q&A 18
Slide 23: Q1 2023 Earnings Presentation
Q1 2023 Earnings Presentation May 15, 2023
Slide 24: Appendix
Appendix 20
Slide 25: Key takeaways
Key takeaways Consolidated revenue for the first quarter grew 9.6% on a reported basis and 10.9% on a comparable basis due to the strong growth of APAC 1 BFB categories, and in particular, domestic noodles. APAC BFB net sales for the first quarter increased by 13.7% on a reported basis and 15.4% on
Slide 26: Consolidated P&L Summary
Consolidated P&L Summary PHP mn Q1 2022 Q1 2023 Reported Change YoY Revenue 18,298 20,050 +9.6% Cost of Goods Sold 11,876 13,951 +17.5% Core Gross Profit 6,422 6,099 -5.0% Core Operating Expenses1 3,517 3,355 -4.6% Core EBITDA2 3,600 3,434 -4.6% Core Net Income3 2,124 1,878 -11.6% Core Net Income at
Slide 27: APAC BFB P&L Summary
APAC BFB P&L Summary PHP mn Q1 2022 Q1 2023 Reported Change YoY Revenue 14,539 16,525 +13.7% Cost of Goods Sold 9,544 11,376 +19.2% Core Gross Profit 4,995 5,149 +3.1% Core Operating Expenses1 2,136 2,113 -1.1% Core EBITDA2 3,382 3,550 +5.0% Core Net Income3 2,137 2,198 +2.8% 1 Core operating expens
Slide 28: Meat Alternative P&L Summary
Meat Alternative P&L Summary PHP mn Q1 2022 Q1 2023 Reported Change YoY Revenue 3,759 3,525 -6.2% Cost of Goods Sold 2,332 2,575 +10.4% Core Gross Profit 1,427 950 -33.4% Core Operating Expenses1 1,381 1,242 -10.1% Core EBITDA2 218 (116) N/M Core Net Income3 (13) (320) N/M 1 Core operating expenses
Slide 29: Cash Flow Summary
Cash Flow Summary PHP mn Q1 2022 Q1 2023 Income before Income Tax 2,934 2,462 Depreciation & Amortization 655 663 Finance Costs 126 161 Derivative Loss (Gain) (75) 1 Working Capital Adjustments (2,224) (936) Others (3) (107) Net Cash Generated from Operations 1,413 2,244 Income Tax Paid & Interest R
Slide 30: 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 27D 32D 31D 8D 6,916 6,877 1,608 242 1Q22 1Q23 1Q22 1Q23 Inventory & Days Inventory Outstanding Accounts Payable1 & Days Payables Outstanding PHP mn PHP mn 90D 66D 69D 73D
Slide 31: Balance Sheet Summary
Balance Sheet Summary PHP mn FY 2022 Q1 2023 PHP mn FY 2022 Q1 2023 Trade and Other Payables 11,323 11,018 Cash and Cash Equivalents 11,629 11,540 Loans Payable - Current 270 270 Trade and Other Receivables 6,800 6,877 Inventories 10,879 10,457 Long-Term Loan 6,983 6,994 Others 3,025 3,111 Others 10
Slide 32: Ratios Summary
Ratios Summary Current Ratio Core Return on Equity 2.19 2.35 10.9% 12.0% Dec 2022 Mar 2023 Mar 2022 Mar 2023 Net Debt-to-Equity Ratio Core Return on Assets 7.3% 7.8% 0.33 0.30 Dec 2022 Mar 2023 Mar 2022 Mar 2023 Core Net Margin 11.6% 9.4% Current ratio = Current assets / Current liabilities Net debt
Slide 33: 2023 CapEx plan to focus on building capacity for APAC BFB
2023 CapEx plan to focus on building capacity and capability for APAC BFB In PHP mn 7,424 1,374 5,216 4,432 3,753 1,817 3,660 2,373 1,522 1,784 6,050 3,399 2,138 1,969 2,059 2019 2020 2021 2022 2023E APAC BFB Meat Alternative 29
Slide 34: Making Better Possible
STRATEGIC PILLARS NORTH STAR TARGETS OTHER UN SDGs Making Better Food Accessibility Possible Monde Nissin develops healthier great-tasting, affordable, and more sustainable products. » Majority revenue share of better and healthier products by 2030. Making Better Making Eco-efficiency Possible Monde
Slide 35: 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 31
Slide 36: 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 37: 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/ 33