Monde Nissin looking to exit from Figaro

According to @mokongboy’s report [link] on yesterday’s analyst briefing, Monde Nissin [MONDE 10.56, down 2.9%; 83% avgVol] [link] is trying to “look for an exit” from its position in Figaro [FCG 0.85, down 3.4%; 65% avgVol]. The report said that MONDE had initially believed that FCG’s brand could “help [MONDE] break into a new category”, but only discovered later that the “possibility is slim” for achieving this goal and that subsequent attempts to bring the FCG brand into the consumer segment has “not been successful.” MONDE acquired a 15% stake in FCG back in March 2023 for P820 million at P1.00/share.  The company made these remarks as part of the Q&A session that followed the 9M earnings call briefing. MONDE reported a 13.8% y/y decrease in Q3 net income to P2 billion due to impairment losses sustained while restructuring its alternative meat business. Despite that, the company’s 9M net income was up 5% to P6.1 billion. MONDE also said that David Flochel has been appointed as the new CEO of the Meat Alternative business, effective January 1. 

MB bottom-line: First off, thank you to @mokongboy for the briefing report (X link) and to MONDE for the refreshing transparency. It posted the slide deck that it presented to analysts (select “briefing materials” in the dropdown), and allowed regular investors to listen in on the earnings call. While that level of transparency should be the enforced norm on the PSE, it’s important to recognize the companies that voluntarily give this level of access and information to their retail investor base. I might not agree with the decisions that the company has made with respect to its Meat Alternative segment or its initial investment in FCG, but if I were a shareholder, I would definitely appreciate hearing the management team providing more context on the thinking behind the FCG move, how it has largely failed, and what the team plans to do next. Companies shouldn’t be able to keep that kind of information semi-private by disclosing it only on Zoom calls with the analyst community. MONDE is taking the lead on investor relations and I hope more companies follow its example.

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