Noodle and biscuit giant Monde Nissin Corp. is building a large food manufacturing plant in Northern Luzon that will potentially generate at least P10 billion in sales.
Monde Nissin chief financial officer Jesse Teo said in a recent briefing the company allotted P7.55 billion for 2025 capital expenditures, including P6.6 billion for its Asia Pacific branded food business, including the construction of new a production plant.
Teo said the company’s biscuit business showed strong growth here and abroad. Because of supply constraints, the company is unable to ship more of its biscuit brands overseas, he said.
“Once the new plant is built, it will deliver more than north of P10 billion in sales,” Teo said.
Monde Nissin ended 2024 with operating cash-flow of P12.8 billion, which can be used to fund the construction of new production facility.
Teo said the construction of the new plant would be done in phases. It will prioritize producing more biscuits amid strong demand from its flagship brand Skyflakes as well as Graham and Nissin Butter Coconut.
“We hope to continue this momentum as we build more capacity for our biscuit business,” Teo said.
Monde Nissin’s market share stood at 28.5 percent in the fourth quarter of 2024, slightly lower than in the preceding quarter amid supply constraints.
Meanwhile, capital expenditures for its meal alternative business will remain modest at P976 million which will primarily be used for restructuring to generate savings.
Monde Nissin expects the Asia Pacific branded food business to register mid-single-digit growth in revenues in 2025.
The company last week reported a P450-million net income in 2024, a turnaround from the P626.58-million net loss in 2023, led by volume growth in its Asia-Pacific business.
While core net income reached to P9.8 billion for the full year, this was offset by the P6.8-billion after-tax, non-cash impairment of assets and P2.6-billion non-cash accounting loss on the fair value in the meat alternative business.