The company behind meat free food favourite Quorn totted up a rise in revenues last year as it invested in a new factory and tackled the challenges of the pandemic.
Marlow Foods Ltd manufactures, distributes and sells Quorn and Cauldron products across the globe from its bases in Billingham and Stokesley, and has seen sales leap in recent years as more customers switch to meat-free foods.
Now the firm – which works with food-on-the-go company Greggs on its vegan sausage rolls – has published accounts for last year, outlining how it continued to invest and open a new factory, while tackling the challenges of the pandemic.
The company posted a 2.9% rise in revenues in 2020 to £236.2m, continuing a long term growth period, but operating profit fell from £21.6m to £13.6m.
The group said it is investing in fermenting and forming capacity, but it took an £11.8m hit after writing down the value of its new factory in Belasis, Billingham, which has yet to reach its full potential.
Before the exceptional write down it said that gross profit of £87m was 7% higher than 2019, while operating profit of £25.4m was 17% higher.
Work started on the factory several years ago and it formed part of a £150m investment to double Quorn's production capacity and create the world's biggest 'meat alternative' factory in Billingham.
On the write down, it said: “We completed the building and development of a new factory at Belasis during the year and for the first time have an in-line paste harvesting and forming line.
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"This is a global first, but on completion of the factory it was clear that not all the money spent on it was contributing to the completed asset and so it was decided to write this asset down to the value we believe it will bring to the business in the future.”
Directors also said the Covid-19 pandemic has had a significant impact on demand in its 海角视频 and core markets, as well as its manufacturing capacity and efficiencies. The company said productivity has been hampered since the first lockdown in March 2020, when social distancing measures and self shielding meant certain production methods needed to be changed and availability of trained skilled staff was consistently reduced.
It also said the pandemic had a significant impact on customers, with demand switching from food services, a lot of which shut down in lockdown, to food retail.
Meanwhile, the group said it continues to invest heavily in research and development, to provide innovative, leading-edge products to meet consumer needs.
Its workforce rose from 894 to 958 in the year, with 21 new members of staff joining its research and development team.
James Harvey, CFO at Quorn, added: " We are pleased with our performance,considering the challenges created by the pandemic. Underlying trading was very positive and we kept our colleagues and business partners safe while not making any claim on the Government for furlough money.
"Keeping our people safe was our number one priority, and then keeping our factories running so we could continue to provide Quorn and Cauldron to the growing number of people who are reducing the amount of meat in their diet. Throughout the last 18 months, despite the challenges and thanks to an amazing team effort by all Quorn Foods staff, I’m proud to say that our facilities continued to run at full capacity."
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He said the company was also continuing to bring in new products, as well as launch more collaborations.
He added: "We will continue to put food and the consumer at the heart of our business and focus on innovation, delivering delicious new products. Our dinosaur-shaped Quorn Roarsomes have proved a huge hit with kids, and we’ve just launched Quorn Brilliant Bangers, our best sausages yet.
"As well as Greggs, we are working with KFC – we collaborated on their incredibly successful Vegan Burger, made with a bespoke Quorn fillet – along with a number of other high street restaurant brands including Pizza Hut, Pizza Express, Itsu and JD Wetherspoons."
Quorn was bought by Monde Nissin the Philippines food company in 2015 in a £550m deal.