MONDE\u2019s alternative meat business Quorn was recently forced to take on a new GBP105 Million (P7.0 Billion) loan, due on June 2025, after previously breaching a debt covenant. The new loan was then used to pay off an older liability which was due on Mar 2024.<\/p>\n\n\n\n
Our View:<\/strong> While the complete terms of the loan have not yet been revealed, we believe that this will place further pressure on the segment\u2019s bottomline given the rising interest rate environment in the UK (+159.9 bps in the last 6 months for 3 year government yields) coupled with the potential contraction in retail spending due to escalating inflation. Furthermore, the fact that a previous covenant had already been breached would give MONDE\u2019s creditors more leverage to demand higher interest payments.<\/p>\n\n\n\n Given this, we would advise investors to prioritize other consumer names. Aside from fellow staple goods stocks such as URC (Target Price: P160.00) and CNPF (Target Price: P31.43), we also recommend DNL (Target Price: P10.30) and FCG Here’s a commentary on an important issue or event affecting the stock market <\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-316904","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/316904","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=316904"}],"version-history":[{"count":3,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/316904\/revisions"}],"predecessor-version":[{"id":320525,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/316904\/revisions\/320525"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=316904"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=316904"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=316904"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
(Target Price: P0.77). Although restaurant operators may face added pressure on their margins stemming from the recent news that Vietnam (supplies 81% of PH rice imports) and Thailand were planning to cooperate in order to raise global rice prices, we believe that FCG\u2019s relatively lower-OPEX model would provide it with enough operating leverage to help offset this. Likewise, DNL should benefit from the ramp up in business activities heading into the holiday season as well as declining input costs.<\/p>\n","protected":false},"excerpt":{"rendered":"