Monde Nissin allots P26.5 billion capex for 3 years

MANILA, Philippines — Monde Nissin Corp., the Filipino snack foods and noodles giant which is set to embark on a record P63-billion initial public offering (IPO), is setting aside P26.5 billion in capital expenditures in the next three years.

The amount is broken down as follows: P7.9 billion for 2021, P8.9 billion for 2022 and P9.8 billion for 2023, according to the company’s prospectus filed with the Securities and Exchange Commission (SEC).

Of the total three year capex of P26.5 billion, Monde Nissin expects to use 80 percent of the amount to build new capacity and capability in both its business segments-the Asia-Pacific Branded Food and Beverage Business (APAC BFB) and the meat alternative business, which includes the production, marketing and sales of the Quorn and Cauldron meat alternative brands.

The APAC BFB Business comprises three product groups namely instant noodles, biscuits and other products. Flagship brands under this category are Lucky Me! for instant noodles; SkyFlakes, Fita, Nissin and M.Y. San Grahams for biscuits; Mama Sita’s for culinary aids and Dutch Mill for yogurt drinks.

Quorn Foods is the market leader in the meat alternatives market in the United Kingdom.

Key projects in the APAC BFB segment are the completion of the Malvar, Batangas facility and new healthy noodles line, as well as other operational efficiency initiatives.

In 2020, the group started the construction of a new facility in Malvar, Batangas costing P815 million as of end 2020.

Moreover, the group completed the construction of a new production line in M.Y San Calamba at P705 million. The construction started in 2019.

Monde Nissin is embarking on a record P63 billion IPO. It is selling up to 3.6 billion common shares with an over allotment option of up to 540 million common shares at an offer price of up to P17.50 per share. Including the over allotment, Monde Nissin’s IPO could raise up to P72.4 billion.

Proceeds from the offer will fund the company’s capital expenditures, redemption of certain notes, repayment of loans and general corporate purposes.

Monde Nissin is “among the frontrunners in the food manufacturing industry in the Philippines with a portfolio of various iconic and well-recognized brands.

The company’s net sales grew 3.3 percent to P65.4 billion in 2019 and 3.8 percent to P67.9 billion in 2020, representing a CAGR of 6.2 percent.

Monde Nissin operates in the Philippines, the United Kingdom and Thailand, with average growth of net sales at 12.4 percent from 2018 to 2020.

The company is owned by Betty Ang, hailed by Forbes as the 38th richest person in the Philippines in 2020 with a net worth of $185 million.

The company has been among the Top 1000 companies in the Philippines since 2000.