Monde Nissin Corp. · PSE:MONDE
Monde Nissin — FY2023 Earnings Presentation
36 slides from Monde Nissin's earnings presentation, Apr 11, 2024
Slide 1: FY 2023 Unaudited Earnings Presentation
FY 2023 Unaudited Earnings Presentation April 11, 2024
Slide 2: Full Year 2023 Financial Performance: Consolidated & APAC BFB
Full Year 2023 Financial Performance Consolidated & APAC BFB 2
Slide 3: Consolidated revenue for FY grew +9.2% year-on-year on a comparable basis
Consolidated revenue for FY grew +9.2% year-on-year on a comparable basis; record core profit for APAC BFB and breakeven EBITDA for Meat Alternative • Record full year and Q4 revenue largely driven by PHP mn Q4 2023 Comparable4 Reported Comparable4 Reported volume growth in APAC FY 2023 Comparable4
Slide 4: Meat Alternative additional impairment in 2023
Meat Alternative additional impairment in 2023 due to lower projected cash flow and higher interest Monde Nissin (UK) Ltd. (MNUK) Value in Use (VIU) & Impairment Loss VIU Breakdown After Impairment In GBP mn 2022 2023 2022 2023 in GBP mn VIU 380 242 Goodwill VIU Breakdown 0 0 Brand 204 115 PPE 188 8
Slide 5: Listed company 2023 retained earnings intact at PHP 7.0 billion
Listed company 2023 retained earnings intact at PHP 7.0 billion due to the protection provided by the controlling family shareholders’ financial support Monde Nissin Singapore Pte. Ltd. (MNSPL) Monde Nissin Corporation (MNC / Listed Company) Total Impairment at MNSPL Books in GBP mn (167.0) In GBP m
Slide 6: Operating cash flow more than doubled to PHP 13.3 billion
Operating cash flow more than doubled to PHP 13.3 billion in FY 2023 versus FY 2022 In PHP mn • Strong operating cash flow led to all-time high 13,291 cash and cash equivalent balance of PHP 16.7 billion Parties • Strong cash balance Involved enables return of value to shareholders via dividends and
Slide 7: PHP 2.2 billion return of capital, PHP 0.12 per share
Strong operating cash flow and controlling family shareholders’ financial support enable PHP 2.2 billion return of capital, or PHP 0.12 per share, to shareholders as of May 2024 payable in June 2024 Retained Earnings Available for Dividend Total Dividends in PHP bn & Dividends per Share in PHP In PH
Slide 8: 2024 CapEx plan to focus on building capacity 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 8
Slide 9: APAC BFB: All-time high sales and core net income
APAC BFB: All-time high sales and core net income for the full year; comparable Q4 gross margin improved +416 bps year-on-year PHP mn Comparable3 Reported Comparable3 Reported Q4 2023 FY 2023 Change YoY Change YoY Change YoY Change YoY • Comparable3 Q4 revenue increase of +7.7% despite a strong base
Slide 10: APAC BFB: Q4 growth driven by volume across categories
APAC BFB: Q4 growth driven by increase in volume across categories led by Noodles and supported by pricing Revenue Growth Breakdown APAC BFB Noodles Biscuits Others1 Q4 Year-on-Year Reported +14.2% +17.6% +11.3% +12.3% Timing of PFRS 15 Adjustment -6.5% -8.1% -4.9% -6.2% Q4 Year-on-Year Comparable +
Slide 11: APAC BFB: Initiatives to sustain share in Noodles
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 63.7% 67.5% 60.6% 59.3% 28.8% 29.1% 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 Yogurt Drinks #1 88.3% 91.1% 4Q22 4Q23 11 Source: Nielsen Retail Audit (pa
Slide 12: APAC BFB: Commodity price lock ins in 2024
APAC BFB: Commodity price lock ins in 2024 to support further gross margin recovery; wheat fully secured until 3Q24 and palm oil partially secured until 4Q24 Wheat (18.5% of APAC BFB COGS) Quarterly Comparable Gross Margin Percent Locked In: +416 bps Q2 2024: 100% Q3 2024: 100% YoY Q4 2024: 50% (for
Slide 13: Full Year 2023 Financial Performance: Meat Alternative
Full Year 2023 Financial Performance Meat Alternative 13
Slide 14: Meat Alternative: Continued progress in a challenging environment
Meat Alternative: Continued progress in a challenging environment, with EBITDA positive for the quarter and broadly neutral for the year • Q4 comparable3 sales declined -4.2%, reflecting PHP mn Q4 2023 Comparable3 Reported Comparable3 Reported • Organic sales decline of FY 2023 Comparable3 Change Yo
Slide 15: Meat Alternative: Cost and cash discipline remains a key focus
Meat Alternative: Cost and cash discipline remains a key focus Others Cost Cash 2023 Restructuring in GBP mn CapEx in PHP mn Closing Inventory in PHP mn 2,373 8-10 4,786 4,689 8* 1,784 1,817 1,522 4,516 1,031 1,000 4,261 One-Time Cost Full-Year Benefits 2019 2020 2021 2022 2023 2024E 1Q23 2Q23 3Q23
Slide 16: Meat Alternative: UK market's challenges continue
Meat Alternative: UK market’s challenges continue with inflation slowing but still elevated UK Economy Meat Alternative Market4 UK Inflation1 Market Growth Quorn Other Brands Private Label 19.2% 16.9% 17.4% 14.6% 12.2% 9.8% 7.0% 8.0% 9.4% 10.1% 10.5% 10.1% -6.0% 7.9% -7.1% 5.9% 6.3% Market 4.2% -7.2
Slide 17: Quorn Foods maintains UK leadership and record foodservice sales
Meat Alternative: Quorn Foods maintains its leadership position in the UK and sets a new record for foodservice sales UK Retail Foodservice Total Market Share1 Sales per Day in PHP mn2 7.3 32.3% 32.4% 7.0 32.2% 32.1% 6.5 6.5 31.8% 6.1 6.2 6.2 31.7% 5.8 5.3 31.1% 30.8% 4.2 4.0 29.7% 2.5 4Q21 1Q22 2Q2
Slide 18: Performance improved under Monde Nissin but macro challenges led to impairment
Performance significantly improved under Monde Nissin but macro challenges put pressures on top line and bottom line which led to impairment Net Sales in GBP mn, Net Sales CAGR Growth, and EBITDA in PHP mn • From 2015 to 2019 • Top line CAGR growth significantly improved to 9.8% from 4.6-4.8% with p
Slide 19: Preliminary Q1 2024 Results & Further Guidance
Preliminary Q1 2024 Results & Further Guidance 19
Slide 20: Preliminary Q1 2024 Results & Further Guidance
Preliminary Q1 2024 Results & Further Guidance APAC BFB Meat Alternative Q1 2024 Low single-digit High single-digit Top Line growth underlying1 decline Continued gross margin Q1 2024 improvement of more than 600 EBITDA approximately Profitability bps year-over-year and more breakeven than 300 bps se
Slide 21: Q&A
Q&A 21
Slide 22: FY 2023 Earnings Presentation
FY 2023 Earnings Presentation April 11, 2024
Slide 23: Appendix
Appendix 23
Slide 24: Key takeaways
Key takeaways Consolidated revenue in Q4 increased by 5.2% on a comparable1 basis, largely driven by volume growth in APAC BFB categories, resulting in 1 a growth of 9.2% for the full year. On a comparable basis, APAC BFB net sales for the fourth quarter increased by 7.7%. The domestic business grew
Slide 25: Consolidated P&L Summary
Consolidated P&L Summary PHP mn Reported Reported FY 2022 FY 2023 Q4 2022 Q4 2023 Change YoY Change YoY Revenue 73,940 80,170 +8.4% 19,043 20,524 +7.8% Cost of Goods Sold 50,792 55,442 +9.2% 14,103 14,355 +1.8% Gross Profit 23,148 24,728 +6.8% 4,940 6,169 +24.9% Core Operating Expenses1 14,827 14,29
Slide 26: APAC BFB P&L Summary
APAC BFB P&L Summary PHP mn Reported Reported FY 2022 FY 2023 Q4 2022 Q4 2023 Change YoY Change YoY Revenue 58,550 65,942 +12.6% 14,877 16,992 +14.2% Cost of Goods Sold 40,398 44,227 +9.5% 11,062 11,202 +1.3% Gross Profit 18,152 21,715 +19.6% 3,815 5,790 +51.8% Core Operating Expenses1 9,694 10,448
Slide 27: Meat Alternative P&L Summary
Meat Alternative P&L Summary PHP mn Reported Reported FY 2022 FY 2023 Q4 2022 Q4 2023 Change YoY Change YoY Revenue 15,390 14,228 -7.6% 4,166 3,532 -15.2% Cost of Goods Sold 10,394 11,215 +7.9% 3,041 3,153 +3.7% Gross Profit 4,996 3,013 -39.7% 1,125 379 -66.3% Core Operating Expenses1 5,133 3,850 -2
Slide 28: Meat Alternative IFRS15 Revenue Recognition Change
Meat Alternative IFRS15 Revenue Recognition Change • 2022 and 2023 PHP mn 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 payments to customers of PHP Sales 3,759 3,703 3,762 4,166 15,390 3,525 3,568 3,603 3,532 14,228 525 million and PHP 463 million Growth - - - - - -6.2% -3.7% -4.2% -15.2% -7.6%
Slide 29: Cash Flow Summary
Cash Flow Summary PHP mn FY 2022 FY 2023 Income before Income Tax (11,886) (1,847) Impairment Loss 21,374 13,272 Depreciation & Amortization 2,714 2,772 Gain on Change in Fair Value of Guaranty Asset - (1,302) Finance Costs 417 681 Derivative Loss (Gain) (1,306) (21) Working Capital Adjustments (3,5
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 20D 32D 30D 15D 11,658 6,800 6,410 3,285 FY22 FY23 FY22 FY23 Inventory & Days Inventory Outstanding Accounts Payable1 & Days Payables Outstanding PHP mn PHP mn 70D 87D 66D
Slide 31: Balance Sheet Summary
Balance Sheet Summary PHP mn FY 2022 FY 2023 PHP mn FY 2022 FY 2023 Cash and Cash Equivalents 11,629 16,679 Trade and Other Payables 11,323 11,684 Inventories 10,879 9,187 Loans Payable - Current 270 1,200 Trade and Other Receivables 6,800 6,410 Long-Term Loan 6,983 3,734 Others 3,025 3,814 Others 1
Slide 32: Ratios Summary
Ratios Summary Current Ratio Net Debt-to-Equity Ratio Core Net Margin Others 2.19 2.04 9.5% 8.9% 0.33 0.15 Dec 2022 Dec 2023 Dec 2022 Dec 2023 Dec 2022 Dec 2023 Current ratio = Current assets / Current liabilities Net debt-to-equity ratio = (Total liabilities – Cash and cash equivalents) / Equity at
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 34
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
[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/ 36