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Philippine Billionaire Betty Angs Monde Nissin To Reduce Spending In A Challenging Business Climate

Philippine Billionaire Betty Angs Monde Nissin To Reduce Spending In A Challenging Business Climate

Monde NissinBetty Ang, a tycoon, and her entire family plan to cut their spending budget in order to preserve cash amid spiralling commodity prices as well as the lingering effects from the Covid-19 pandemic.

The net profit of the company fell to 3.2 Billion Pesos ($61.3 Million) in 2021. This was 60% less than the previous year. This was due to one-off costs arising from the redemption convertible bonds and margin pressures resulting from the rising price of key raw material such as wheat, palm oil, and wheat. Net profit of the Philippines’ largest noodles maker fell 5.4%, to 8.2 billion pesos. This was despite a 2% increase to net sales to 69.3 million pesos.

Monde Nissin, its chief financial officer, said that in spite of the difficult business environment, it is reviewing the pace of its investments with the aim to reduce the 9 Billion Pesos in capital expenditures it originally planned for 2022.

Teo stated that we need to maintain our cash buffer to be resilient in these volatile times. Monde Nissin stated that it had 13.9 million pesos in cash and cash equivalents at the end of 2021, while its outstanding debts were 7 billion.

The company raised 48.6 billion in June from the Philippines’ largest-ever initial publicly traded company. It has been managing its finances. It has capped its 2021 spending to 5.3 million pesos to combat the Covid-19 pandemic that continued to depress the economy. Monde Nissin spent 15.6 billion pesos from the IPO proceeds in August Repay some debtsTo save on interest expenses

Monde Nissin CEO Henry Soesanto explained that Monde Nissin has also helped to mitigate rising operating costs by minimizing supply-chain disruptions, and ensuring sufficient supplies for key raw materials.

Soesanto stated that while we had a strong start for the year (2022), the main challenge is how we deal the global wall of commodities inflation. There is only so much you can do through supply chain efficiencies. After that, it is a mathematical certainty that we will have cost increases that we must pass on to our customers.

Soesanto stated that the company doesn’t plan to pass on increasing operating costs to consumers completely and that this could hurt profit margins. We are constantly mindful of the fact that inflationary pressures are affecting our customers as well.

Monde Nissin was founded in 1979 by Ang, the late Indonesian tycoon Hidajat Darmono (whose family also owns the company). Khong GuanIndonesian biscuit factory. The company started out making biscuits, before expanding into instant noodles in 1989. Monde Nissin has been expanding into alternative meats in recent years with the acquisition of Quorn, a British company, for 550 million pounds ($724.5million) in 2015.

Ang, 67-year-old, is also Monde Nissin’s president. Darmonos son, Hoediono, 69, is the vice chairman. Their combined net worth amounts to $1.2 billion.

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