Quorn-owner Monde Nissin has invested 1.2bn pesos ($21.7m) in its facility in Davao City on the southern Philippine island of Mindanao to expand production.
Monde Nissin’s expanded Davao plant is set to include a bakery to produce its brands Butter Coconut, a crispy sweet biscuit brand, and Monde Mamon, a traditional Filipino sponge cake brand. The facility had already been producing Lucky Me! noodle products for over a decade.
The project is expected to contribute to the bottom line of Monde Nissin by February 2024, according to the company.
The investment is due to create more than 500 new jobs as the bakery and biscuits plant is anticipated to “shorten inventory cycles and improve product shelf visibility” in Visayas and Mindanao, two of the three main island groups in the Philippines.
Monde Nissin chief financial officer Jesse Teo said the company is reaffirming its commitment to a “future of inclusive growth and investment in the local economy.”
He added: “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.
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“This, in turn, supports economic growth, job creation, and the development of a resilient and thriving community.”
Romeo Marañon, head of Monde Nissin’s bakery and biscuits unit, said the fortified supply chain will aid in building community resilience as Mindanao becomes more prone to natural disasters.
“Monde Nissin has been a very active contributor to disaster relief in the region through the noodle brand. 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,” he added.
In the Quorn owner’s annual results for 2022, the group’s revenue grew 6.7% year-on-year to 73.94bn pesos ($1.34bn). Its core gross profit however fell 9.6% to 23.15bn pesos.
The company’s Asia-Pacific branded food and beverage division (APAC BFB) made up nearly 80% of the group’s revenue, with its meat alternatives division comprising the remainder. APAC BFB’s net sales grew 9.3% compared to the previous year, reaching 58.55bn pesos.
In the opening quarter of its fiscal 2023, Monde Nissin’s net sales have spiked by 10.9% year-on-year yet its core gross profit and EBITDA both fell. Sales from the APAC BFB division increased by 15.4% whilst sales at the meat alternatives unit fell 6.2%.