Monde Nissin Corp. · PSE:MONDE
Monde Nissin — Q1 2022 Earnings Presentation
31 slides from Monde Nissin's earnings presentation, May 11, 2022
Slide 1: Q1 2022 Earnings Presentation
Confidential IS Q1 2022 EARNINGS PRESENTATION May 11, 2022
Slide 2: 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 3: Our corporate aspirations
Our corporate aspirations We acknowledge: We acknowledge: Food we produce and consumers It will be impossible to feed the consume impact not only our growing global population health, but also the health if we do not change the of the environment way we produce and consume food We aspire to improve
Slide 4: First Quarter 2022 Financial Performance: Consolidated & APAC BFB
Section 1 First Quarter 2022 Financial Performance Consolidated & APAC BFB 4
Slide 5: Consolidated Q1 2022 Performance at a Glance
Consolidated Q1 2022 Performance at a Glance Net sales: Gross profit: Strong start-growth on pricing and volume Ongoing recovery, partially mitigated rising commodity costs +7.2% YoY -4.3% YoY -4.2ppts YoY +2.6% QoQ +7.1% QoQ +1.5ppts QoQ 17,076 17,836 18,298 39.3% 35.1% 33.6% 6,712 5,994 6,422 Q1 2
Slide 6: Consolidated revenue increased 7.2% driven by APAC BFB domestic business
Consolidated revenue increased 7.2% driven by the APAC BFB domestic business; core net margin at ownership dip mitigated by pricing and cost containment measures PHP mn Reported Reported Q1 2022 • Pricing actions across Change YoY Change QoQ businesses and volume Net Sales 18,298 +7.2% +2.6% growth
Slide 7: APAC BFB: Robust top line growth due to improving domestic business
APAC BFB: Robust top line growth due to improving performance of Domestic business at +10.5% Reported Reported • Volumes for Noodles sustained PHP mn Q1 2022 Change YoY Change QoQ year-on-year given programs to maintain pandemic gains Net Sales • Biscuits growth drives volume to 14,539 +8.6% +5.9% p
Slide 8: APAC BFB: Net sales shows growth on growth on growth
APAC BFB: Net sales shows growth on growth on growth Historical Sales Q1 Growth Breakdown +6.8% 3-year CAGR +8.6% YoY +8.6% +0.3% 14,539 YoY +5.9% QoQ +4.9% +2.9% 14,539 +9.1% 13,394 13,723 13,020 11,931 +3.3% 13,394 Carry-over +3.3% New +2.1% Support (0.5%) Q1 2019 Q1 2020 Q1 2021 Q4 2021 Q1 2022 Q
Slide 9: 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 Others #1 Oyster Sauce #1 70.1% 57.0% 60.7% 67.9% Milky Me Variants 1Q21 1Q22 Yogurt Drinks #1 1Q21 1Q22 83.7% 89.8% Kasalo Pack Variants Biscuits #1 1Q21 1Q22 30.9% 29.6% Cultured Milk #
Slide 10: APAC BFB: Commodity pressures accelerated, partially mitigated by pricing
APAC BFB: Commodity pressures accelerated, partially mitigated by stepped pricing actions and cost containment initiatives Wheat1 14 • Raw materials constitute 50% of +54% COGS; wheat and palm oil together 12 from Mar 2021 make up 40-45% of raw materials to Mar 2022 costs 10 USD 8 • Majority of whea
Slide 11: First Quarter 2022 Financial Performance: Meat Alternative
Section 2 First Quarter 2022 Financial Performance Meat Alternative 11
Slide 12: Meat Alternative: UK price increases see gross margin and EBITDA improve
Meat Alternative: UK price increases mid-Q1 see gross margin and EBITDA improve from 4Q 2021 • Reported sales grew by 2.1%, benefitting from forex gains • UK retail market share grew to PHP mn Reported Reported 31.0%, +0.9ppts versus 4Q21 Q1 2022 Change YoY Change QoQ • Retail sales fell year-on-yea
Slide 13: Meat Alternative: UK market rebalancing as business transfers to out-of-home
Meat Alternative: UK meat alternative market currently rebalancing as business transfers to out-of-home UK Grocery Market Performance The week ending 26th February 2022 saw Total Store Value Sales decline -1.4% vs last week to 2.26bn. That figure is down -4.2% (-£96.6m) vs YA, with Total Food and No
Slide 14: Meat Alternative: Confidence fragile as UK sees highest cost of living increase
Meat Alternative: Confidence remains fragile as UK sees highest cost of living increase in more than 30 years Recent Macroeconomic News UK Inflation %age (CPI : Source ONS) 7.0 6.2 5.4 5.5 5.1 4.2 3.2 3.1 2.5 2.1 2.0 1.5 0.7 • Consumers face increasing financial pressure • Tax increases (national in
Slide 15: Meat Alternative: Quorn Foods responded to global challenges
Meat Alternative: Quorn Foods has proactively responded to global challenges; Customer service maintained at 97% Protecting Supply Protecting Profit Protecting Cash Forward purchase on key Increased prices to customers to Capex prioritized with long-term contracts with cover of 6 months recover impa
Slide 16: Meat Alternative: UK brand share growing with distribution gains
Meat Alternative: UK brand share growing with distribution points continuing to gain momentum UK (Total) Retail Market Share1 UK Retail Points of Distribution #1 143.6 129.1 132.5 30.9% 30.6% 30.1% 31.0% 123.1 128.0 30.3% Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar-22 Mar 2021 Jun 2021 Sep 2021 Dec 2021
Slide 17: Meat Alternative: Quorn's new UK products in top 10
Meat Alternative: Quorn’s new UK products have 4 of the top 10 including #1 and #2 UK grocery market remains in decline Branded Private Label Top 1 2 3 4 5 6 7 8 9 10 • Quorn has 6 of the top 20 NPD products including Quorn Crunchy Fillet Burgers at #1 which outsells #2 by 3x • Only one other brande
Slide 18: Meat Alternative: Early days for the US strategy
Meat Alternative: Early days for the US strategy. Market share loss due to 2021 distribution losses, partial recovery in Q1 Distribution, Share and Return on Sale Marketing Grocery distribution Frozen Grocery Share increased by 4% in the first Quarter 6.2% 4% 5.6% 5.7% 5.2% 3.6% 83.4 86.7 DEC 21 MAR
Slide 19: Meat Alternative: KFC launches and best-ever quarter for UK foodservice
Meat Alternative: Good progress with KFC launches and best-ever quarter for UK foodservice KFC Launch Progress Foodservice Stage As of 4Q21 As of 1Q22 Australia India Australia NEW: Philippines Samples / Trial India Taiwan France Malaysia Japan LATAM CEE (25 markets) MENA Germany CEE (25 markets) Li
Slide 20: Q&A
Q&A 20
Slide 21: Appendix
Section 4 Appendix 21
Slide 22: Key takeaways
Key takeaways Consolidated revenue increased 7.2% for the first quarter on the strong performance 1 of the APAC BFB domestic business. APAC BFB: Net sales increased 8.6% on the improving performance of the domestic business, which grew 10.5% given prices increases and continued volume growth 2 for n
Slide 23: Consolidated P&L Summary
Consolidated P&L Summary PHP mn Q1 2021 Q1 2022 Reported Change YoY Revenue 17,076 18,298 +7.2% Cost of Goods Sold 10,364 11,876 +14.6% Gross Profit 6,712 6,422 -4.3% Core Operating Expenses1 3,341 3,517 +5.3% Core EBITDA2 3,995 3,600 -9.9% Core Net Income3 2,575 2,124 -17.5% Core Net Income at Owne
Slide 24: APAC BFB P&L Summary
APAC BFB P&L Summary PHP mn Q1 2021 Q1 2022 Reported Change YoY Revenue 13,394 14,539 +8.6% Cost of Goods Sold 8,190 9,544 +16.5% Gross Profit 5,204 4,995 -4.0% Core Operating Expenses1 2,057 2,136 +3.8% Core EBITDA2 3,613 3,382 -6.4% Core Net Income3 2,407 2,137 -11.2% 1 Core EBITDA = EBITDA – conv
Slide 25: Meat Alternative P&L Summary
Meat Alternative P&L Summary PHP mn Q1 2021 Q1 2022 Reported Change YoY Revenue 3,682 3,759 +2.1% Cost of Goods Sold 2,174 2,332 +7.3% Gross Profit 1,508 1,427 -5.4% Core Operating Expenses1 1,284 1,381 +7.6% Core EBITDA2 382 218 -42.9% Core Net Income3 168 (13) N/M 1 Core EBITDA = EBITDA – converti
Slide 26: Cash Flow Summary
Cash Flow Summary PHP mn Q1 2021 Q1 2022 Income before Income Tax 2,900 2,934 Depreciation & Amortization 586 655 Interest Expense 917 126 Derivative Loss (Gain) (382) (75) Change in Working Capital (378) (2,224) Others 42 (3) Cash Generated from Operations 3,685 1,413 Income Tax Paid & Interest Rec
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 32D 30D 28D 6,916 6,093 2,454 307 1Q21 1Q22 1Q21 1Q22 Inventory & Days Inventory Outstanding Accounts Payable & Days Payables Outstanding PHP mn PHP mn 73D 71D 70D 66D
Slide 28: Balance Sheet Summary
Balance Sheet Summary PHP mn FY 2021 Q1 2022 PHP mn FY 2021 Q1 2022 Cash and Cash Equivalents Trade and Other Payables 11,156 10,941 13,857 13,481 Trade and Other Receivables 6,249 6,916 Loans Payable - Current 6,999 6,980 Inventories 8,572 8,885 Long-Term Loan 0 0 Others 1,935 1,652 Others 13,287 1
Slide 29: Ratios Summary
Ratios Summary Current Ratio Core Return on Equity 1.37 1.49 17.5% 11.3% Dec 2021 Mar 2022 Mar 2021 Mar 2022 Debt-to-Equity Ratio Core Return on Assets 8.9% 7.8% 0.46 0.42 Dec 2021 Mar 2022 Mar 2021 Mar 2022 Core Net Margin 14.4% 11.6% Current ratio = Current assets / Current liabilities Mar 2021 Ma
Slide 30: ESG: Continue our aspiration to improve well-being of people and planet
ESG: Continue our aspiration to improve the well-being of people and the planet, and create sustainable solutions for food security • Enrich bakery products with • Waste-to-value initiatives essential nutrients • Post-consumer waste Pivoting Moving toward a • Aim to reduce sodium content footprint m
Slide 31: Investor relations contact details
[email protected] 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/ 31