{"id":330335,"date":"2024-11-12T08:43:11","date_gmt":"2024-11-12T00:43:11","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330335"},"modified":"2024-11-12T08:43:16","modified_gmt":"2024-11-12T00:43:16","slug":"trade-the-news-monde-looking-to-exit-from-fcg","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-monde-looking-to-exit-from-fcg\/","title":{"rendered":"Trade the News: MONDE looking to exit from FCG"},"content":{"rendered":"\n
Potential Impact of this News<\/strong><\/td>POSITIVE on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>Monde Nissin Corp.<\/td><\/tr>
Stock Code<\/strong><\/td>MONDE<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 12.20<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Potential Impact of this News<\/strong><\/td>NEGATIVE on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>Figaro Coffee Group<\/td><\/tr>
Stock Code<\/strong><\/td>FCG<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 1.05<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Monde Nissin Corp. (MONDE) will divest its 15% stake in Figaro Coffee as it shifts focus to the coconut milk market, part of a broader strategy to expand its portfolio of fast-growing consumer products and reduce its reliance on instant noodles.<\/p>\n\n\n\n

CEO Henry Soesanto said Figaro Coffee has not lived up to expectations in expanding the company\u2019s offerings and creating additional distribution channels for its other consumer goods.<\/p>\n\n\n\n

\u201cWe are considering an exit today,\u201d Soesanto said. \u201cWe had hoped investing in Figaro would help us enter this consumer segment, but it has not been successful.\u201d<\/p>\n\n\n\n

In 2023, Soesanto spearheaded Monde Nissin\u2019s acquisition of a 15% stake in Figaro for P820.3 million, hoping for synergies with the homegrown coffee chain and its network of Taiwanese restaurants and pizza parlors. The current value of the stake stands at P721.5 million, based on Thursday\u2019s closing price.<\/p>\n\n\n\n

Apart from its noodles, Monde Nissin produces a range of products, including bread, biscuits, pastries, the meat alternative Quorn, tofu, vegan falafel, and sausages under the Cauldron brand. The company also distributes Mama Sita\u2019s culinary sauces and ready-to-drink yogurt and cultured milk.<\/p>\n\n\n\n

\u201cWe initially thought Figaro would help us enter a new category, but the potential has proven limited,\u201d Soesanto said.<\/p>\n\n\n\n

The potential sale comes as Monde Nissin announced its entry into the packaged coconut milk market with the launch of Goodnom Fresh Gata, a product set to compete with offerings from Nestl\u00e9, Century Pacific Food Inc., Axelum Resources Corp., and imports from Indonesia and Thailand.<\/p>\n\n\n\n

Fresh coconut milk, locally known as gata, is a widely used culinary ingredient in the Philippines, traditionally sourced from wet markets.<\/p>\n\n\n\n

Soesanto said that processed or packaged gata is a fast-growing segment, with household penetration still low at 9%. However, the consumption of coconut milk dishes has increased, rising to 20% from 15% last year.<\/p>\n\n\n\n

\u201cWe are excited about the opportunities in this category and expect it to contribute to our branded food businesses,\u201d Soesanto said.<\/p>\n\n\n\n

According to sales data as of September 2023, the processed coconut milk market, valued at P2.5 billion, is growing at an annual rate exceeding 80%.<\/p>\n\n\n\n

(News Source: Bilyonaryo<\/a>)<\/em><\/p>\n\n\n\n

<\/div>\n\n\n\n

This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Take advantage of the price opportunity that might arise when the news hits. Trade the news!<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1371],"tags":[],"class_list":["post-330335","post","type-post","status-publish","format-standard","hentry","category-trade-the-news","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\/330335","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=330335"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330335\/revisions"}],"predecessor-version":[{"id":330337,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330335\/revisions\/330337"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=330335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=330335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=330335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}