Monde Nissin Corp. has reduced its 2026 capital expenditure budget to P5.4 billion from about P6.5 billion, prioritizing a new biscuit manufacturing plant in Northern Luzon as it navigates softer noodle volumes and intensifying competition from premium imports.
“We are building a new biscuit plant in Northern Luzon and that’s our key capex project for the group,” chief financial officer Jesse C. Teo said.
Most of the planned spending will go to the company’s Asia-Pacific branded food and beverage business, where biscuits and other strategic growth categories have supported revenue expansion through higher sales volumes and pricing.
The investment comes as Monde Nissin works to defend its position in the Philippine noodle market, which accounts for about 40 percent of its food business. Noodle volumes remained lower in the January-to-September period, although third-quarter volumes improved 3 percent from the preceding quarter.
Teo estimated that premium noodle brands, predominantly from Indonesia, have captured close to 10 percent of the Philippine market by value, adding pressure on established players to respond to changing consumer preferences.
Monde Nissin is countering the competition with more affordable premium offerings, limited-time barbecue and chili cheese flavors, and additional products in development.
The company is also managing foreign exchange and commodity risks as currency depreciation and weather-related supply disruptions threaten input costs.
Teo estimated Monde Nissin’s US dollar short position at USD150 million, with peso depreciation accounting for an estimated P250-million impact. Dollar holdings and options provide some protection, while its expanding UK business offers a natural currency hedge.
Anticipating possible palm oil price increases associated with El Niño, the company has secured substantial purchasing positions. Lower coconut oil costs are also helping cushion the pressure.
For the first nine months, group revenue rose 7.3 percent to P67.9 billion, while core net income attributable to shareholders increased 16.1 percent to P8.3 billion.
