MONDE Nissin Corp. has allotted P7.2 billion for its capital expenditure (capex) budget this year to support the company’s growth plans, according to its chief financial officer (CFO).
The capex budget will come from the company’s operating cash flow and will be used on facilities and to increase production, Monde Nissin CFO Jesse C. Teo told an online news briefing last week.
The listed Philippine food and beverage maker had a P3.64-billion capex last year.
Mr. Teo said P6.2 billion of the P7.2 billion will be dedicated to the Asia-Pacific branded food and beverage segment, he said. The remaining P1 billion will be used for Monde Nissin’s meat substitute segment.
The capex will be used for the company’s facilities in Pampanga, Laguna and Davao, he added.
Monde Nissin entered into a long-term lease in Pampanga including right of use assets that will cost almost P1 billion, Mr. Teo said.
“In addition, we have the completion of our facilities in Carmelray Industrial Park, Laguna and in Davao. All these projects are ongoing,” he added.
The company is also working on projects to improve its bakery business. “We need to catch up on capacity in order for us to serve the volumes that our consumers are demanding.”
He added that Monde Nissin is diversifying its supply base to support the company’s expansion plans.
“We are taking the opportunity to diversify our supply base in Northern Luzon and Southern Philippines so that we are not reliant on one plant,” Mr. Teo said. “This will also ensure that products get to our ultimate consumers as fresh as possible.”
Monde Nissin cut its net loss to P626 million last year from P13.01 billion a year earlier as consolidated revenue improved by 8.4% to P80.17 billion.
Revenue of the company’s Asia-Pacific branded food and beverage segment rose by 12.6% to P65.94 billion, while sales of its meat alternative business fell by 7.6% to P14.23 billion.
Monde Nissin’s brands include Lucky Me! noodles, SkyFlakes and Fita crackers, Monde baked goods, and Quorn meat alternative products.
Monde Nissin shares were last traded on April 12 at P10.70 each. — Revin Mikhael D. Ochave
