Monde Nissin Corp. · PSE:MONDE
Monde Nissin — H1 2023 Earnings Presentation
36 slides from Monde Nissin's earnings presentation, Aug 9, 2023
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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 9, 2023 Date of Report (Date of earliest event reported) 2. SEC Identification Number 0000086335 3. BIR Tax Identification No. 000-417-352-00
Slide 4: Monde Nissin Corporation August 9, 2023
MONDE NISSIN CORPORATION August 9, 2023 Issuer Date ‘ Michael Paska Chief Investor Relations Officer
Slide 5: 1H 2023 Earnings Presentation
1H 2023 Earnings Presentation August 9, 2023
Slide 6: First Half 2023 Financial Performance: Consolidated & APAC BFB
First Half 2023 Financial Performance Consolidated & APAC BFB 2
Slide 7: Consolidated revenue for the first half posted +7.0% comparable growth
Consolidated revenue for the first half posted +7.0% comparable growth year-on-year; Q2 resulted in APAC BFB gross margin rebound and breakeven EBITDA for Meat Alternatives 4 4 • Comparable4 revenue PHP mn Q2 Reported Comparable 1H Reported Comparable improvement of +7.0% in 2023 Change YoY Change Y
Slide 8: APAC BFB: 1H growth driven by price in all categories
APAC BFB: 1H growth driven by price in all categories and volume growth in Biscuits and Other categories; comparable Q2 gross margin improved +101 bps QoQ and +46 bps YoY Reported Reported PHP mn Q2 Comparable3 1H Comparable3 Change Change 2023 Change YoY 2023 Change YoY YoY YoY • Pricing across all
Slide 9: APAC BFB: Q2 growth driven by price increases across all categories
APAC BFB: Q2 growth driven by price increases across all categories and volume growth in Other category, resulting in +4.9% comparable top line growth despite a high base in 2022 Revenue Growth Breakdown APAC BFB Noodles Biscuits Others1 Q2 Year-on-Year Reported +2.7% -4.2% +7.9% +11.6% Timing of PF
Slide 10: APAC BFB: Noted slowdown in volume growth rates for most categories
APAC BFB: Noted slowdown in volume growth rates for most categories in the past three consecutive months Volume Growth Rates by Category Year-on-Year Growth YTD Mar ‘23 YTD Apr ‘23 YTD May ‘23 Year-on-Year Growth YTD Mar ‘23 YTD Apr ‘23 YTD May ‘23 Total Food 9 7 5 Beverage 8 6 5 Prepared Cooking/Fo
Slide 11: APAC BFB: Noodles volume decline in Q2 consistent with category slowdown
APAC BFB: Noodles volume decline in Q2 consistent with overall noodles category volume slowdown Noodles Quarter-to-Date Net Sales in KG 2018 Q2 Q3 Q4 2019 Q2 Q3 Q4 2020 Q2 Q3 Q4 2021 Q2 Q3 Q4 2022 Q2 Q3 Q4 2023 Q2 7
Slide 12: APAC BFB: Initiatives underway to address share recovery plateau in Noodles
APAC BFB: Initiatives underway to address share recovery plateau in Noodles and share challenges in Biscuits Noodles Biscuits Others Others #1 Oyster Sauce #1 #2 66.5% 66.1% 61.2% 58.0% 28.5% 27.9% 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 Yogurt Drinks #1 89.8% 89.8% 2Q22 2Q23 8 Source: Nielsen Retail Audit (p
Slide 13: APAC BFB: Favorable commodity positions for 2H 2023
APAC BFB: Favorable commodity positions for 2H 2023 to support margin recovery for the rest of the year; wheat and crude palm oil substantially secured until the end of 4Q23 Wheat Quarterly Gross Margin +46 bps Cost YoY avoidance +101 bps Cost avoidance 33.4% QoQ Geo-political conflict between Ukrai
Slide 14: First Half 2023 Financial Performance: Meat Alternative
First Half 2023 Financial Performance Meat Alternative 10
Slide 15: Meat Alternative: Progress in a challenging environment with breakeven EBITDA
Meat Alternative: Progress in a challenging environment with breakeven EBITDA driven by restructuring benefits and cost control; UK share gains sustained +1.1% year-on-year PHP mn Reported Reported • Q2 reported sales declined by -3.7%, reflecting Q2 2023 1H 2023 Change YoY Change YoY • Decreased sa
Slide 16: Meat Alternative: UK market challenges continue, Quorn outperforming
Meat Alternative: The UK market’s challenges continue with Quorn Foods outperforming the competition UK Economy Meat Alternative Market*** UK Inflation Market Growth Quorn Other Brands Private Label 19.2% 16.9% 17.4% 14.6% -0.3% 9.8% 7.0% 7.9% -4.6% Market 9.4% 10.1% 10.5% 10.1% -6.0% 5.9% 1Q22 2Q22
Slide 17: Meat Alternative: Quorn Foods secures leadership position in UK grocery
Meat Alternative: Quorn Foods continues to secure its leadership position in UK grocery market Market Share* Distribution Points Total Market Share Quorn Foods Points of Distribution (000s) & Percentage of Total Meat Alternative 32.5% 170 27.5% 32.3% 32.3% 166 166 165 164 163 27.0% 31.7% 26.5% 160 1
Slide 18: Meat Alternative: Foodservice continues to grow year-on-year
Meat Alternative: Foodservice continues to grow year-on-year in challenging conditions Overall Sales* New Listings Sales per Day (in PHP mn) 7.2 6.8 6.7 6.4 6.2 6.2 5.6 4.3 4.5 2.8 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 • 2Q23 year-on-year growth of 5.8%, performance includes impact of •
Slide 19: Meat Alternative: Restructure now substantially complete and delivering
Meat Alternative: Restructure now substantially complete and delivering as planned In GPB mn • UK 8-10 • Commercial and Admin functions right sized (c. 8 20 full-time employees) • Supply chain Implemented reorganized to mid/end 2Q22 increase efficiency and 5-7 agility whilst preserving ability to re
Slide 20: Meat Alternative: Four pillars supporting positive medium-term outlook
Meat Alternative: Four pillars that support our view on positive medium-term outlook Biggest market is UK where major Foodservice business retailers are supportive of the category continues to grow Brand strength, favorable direction for Mycoprotein is a commodity prices, and cost saving initiatives
Slide 21: Q&A
Q&A 17
Slide 22: 1H 2023 Earnings Presentation
1H 2023 Earnings Presentation August 9, 2023
Slide 23: Appendix
Appendix 19
Slide 24: Key takeaways
Key takeaways 1 On a comparable basis, consolidated revenue for the first half grew 7.0% as Q2 growth tapered to 3.2%. On a comparable basis, APAC BFB net sales for the first half increased by 10.0%. The domestic business grew 9.3% year-on-year in the first 2 half due to the moderated growth in Q2 a
Slide 25: Consolidated P&L Summary
Consolidated P&L Summary PHP mn Reported Reported 1H 2022 1H 2023 Q2 2022 Q2 2023 Change YoY Change YoY Revenue 37,172 39,193 +5.4% 18,874 19,143 +1.4% Cost of Goods Sold 24,401 27,225 +11.6% 12,525 13,274 +6.0% Gross Profit 12,771 11,968 -6.3% 6,349 5,869 -7.6% Core Operating Expenses1 7,392 7,031
Slide 26: APAC BFB P&L Summary
APAC BFB P&L Summary PHP mn Reported Reported 1H 2022 1H 2023 Q2 2022 Q2 2023 Change YoY Change YoY Revenue 29,710 32,100 +8.0% 15,171 15,575 +2.7% Cost of Goods Sold 19,684 21,940 +11.5% 10,140 10,564 +4.2% Gross Profit 10,026 10,160 +1.3% 5,031 5,011 -0.4% Core Operating Expenses1 4,736 4,730 -0.1
Slide 27: Meat Alternative P&L Summary
Meat Alternative P&L Summary PHP mn Reported Reported 1H 2022 1H 2023 Q2 2022 Q2 2023 Change YoY Change YoY Revenue 7,462 7,093 -5.0% 3,703 3,568 -3.7% Cost of Goods Sold 4,717 5,285 +12.0% 2,385 2,710 +13.6% Gross Profit 2,745 1,808 -34.1% 1,318 858 -34.9% Core Operating Expenses1 2,656 2,301 -13.4
Slide 28: Cash Flow Summary
Cash Flow Summary PHP mn 1H 2022 1H 2023 Income before Income Tax 5,636 4,558 Depreciation & Amortization 1,323 1,376 Finance Costs 212 315 Derivative Loss (Gain) - 2 Working Capital Adjustments (3,047) (1,793) Others (189) (220) Net Cash Generated from Operations 3,935 4,238 Income Tax Paid & Inter
Slide 29: 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 31D 13D 6,486 6,577 3,000 1,648 1H22 1H23 1H22 1H23 Inventory & Days Inventory Outstanding Accounts Payable1 & Days Payables Outstanding PHP mn PHP mn 89D 71D 73D
Slide 30: Balance Sheet Summary
Balance Sheet Summary PHP mn FY 2022 1H 2023 PHP mn FY 2022 1H 2023 Trade and Other Payables 11,323 10,023 Cash and Cash Equivalents 11,629 10,934 Loans Payable - Current 270 628 Trade and Other Receivables 6,800 6,577 Inventories 10,879 11,086 Long-Term Loan 6,983 5,985 Others 3,025 3,431 Others 10
Slide 31: Ratios Summary
Ratios Summary Current Ratio Core Return on Equity 2.19 2.43 10.9% 11.1% Dec 2022 Jun 2023 Jun 2022 Jun 2023 Net Debt-to-Equity Ratio Core Return on Assets 7.3% 7.3% 0.33 0.28 Dec 2022 Jun 2023 Jun 2022 Jun 2023 Core Net Margin 11.0% 8.9% Current ratio = Current assets / Current liabilities Net debt
Slide 32: 2023 CapEx plan to focus on building capacity and capability for APAC BFB
2023 CapEx plan to focus on building capacity and capability for APAC BFB In PHP mn 6,160 5,216 1,374 4,432 3,753 1,817 3,660 2,373 1,522 1,784 4,786 3,399 2,138 1,969 2,059 2019 2020 2021 2022 2023E APAC BFB Meat Alternative 28
Slide 33: 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 34: 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 30
Slide 35: 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 36: 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/ 32