Monde Nissin Corp. looks to spend P7.2 billion this year, up from last year’s P3.64 billion and which will be funded internally.
Jesse Teo, Monde Nissin chief finance officer , said most of the amount, at P6.2 billion, will be used to beef up its branded food and beverage business in Asia-Pacific.
Teo said the company has signed a long-term lease for a facility in Pampanga to make its products more accessible up north.
“We are taking the opportunity to diversify our supply base. North Luzon, Southern Philippines, so that we are not reliant on one plant. This will also ensure that products get to our ultimate consumers as fresh as possible,” Teo said.
Monde Nissin continues to reel from the challenging environment of its meat alternative business, posting a P626 million loss last year, though a 95.19 percent improvement from the prior year’s P13.01 billion.
Revenues grew 9.2 percent to P80.17 billion from P73.88 billion the prior year, driven by a broad-based Asia Pacific branded food and beverage volume growth, offsetting softness in the meat alternative business.
Monde Nissin expect a high single-digit revenue decline and approximately breakeven in earnings before interest, taxes, depreciation and amortization in the first quarter as it works to make the meat alternative business profitable.
