Monde Nissin, the owner of Quorn, has made a 1.2bn pesos ($21.7m) investment in its Davao City facility in the southern Philippine island of Mindanao, with the aim of expanding production in the food and beverage industry.
The Davao plant expansion project includes the addition of a bakery to manufacture Butter Coconut, a crispy sweet biscuit brand, and Monde Mamon, a traditional Filipino sponge cake brand. The facility, which has been producing Lucky Me! noodle products for over ten years, is expected to contribute to Monde Nissin’s profits by February 2024.
This significant investment will also lead to the creation of over 500 new jobs, as the bakery and biscuits plant will help in shortening inventory cycles and improving product shelf visibility in Visayas and Mindanao, two of the main island groups in the Philippines.
Monde Nissin’s Chief Financial Officer, Jesse Teo, emphasized the company’s commitment to inclusive growth and investment in the local economy. He stated, “This expansion not only enhances our manufacturing capacity but also strengthens our network of partner distributors and retailers. It enables us to supply beloved Monde Nissin products to customers in the region more efficiently, amplifying our impact and reach. This, in turn, supports economic growth, job creation, and the development of a resilient and thriving community.”
Romeo Marañon, the head of Monde Nissin’s bakery and biscuits unit, highlighted the importance of a fortified supply chain in building community resilience, especially in a region like Mindanao that is prone to natural disasters. He stated, “With the bakery and biscuits expansion, we’ll be able to provide more food products and act as a quick response partner in providing food to communities in need.”
In their annual results for 2022, Monde Nissin reported a 6.7% year-on-year revenue growth to 73.94bn pesos ($1.34bn). However, the core gross profit declined by 9.6% to 23.15bn pesos. The Asia-Pacific branded food and beverage division (APAC BFB) contributed nearly 80% of the company’s revenue, with the remainder coming from its meat alternatives division. APAC BFB’s net sales grew by 9.3% compared to the previous year, amounting to 58.55bn pesos.
Although Monde Nissin’s net sales increased by 10.9% year-on-year in the opening quarter of its fiscal 2023, both the core gross profit and EBITDA declined. Sales from the APAC BFB division experienced significant growth of 15.4%, while sales at the meat alternatives unit fell by 6.2%.
