Meat-free food products maker Quorn says sales declines have slowed down amid a turnaround plan designed to return it to profitability.
Marlow Foods, the parent company behind the Billingham and Stokesley-based manufacturer which also owns the Cauldron brand, says Quorn has gained market share in the first half of 2025, as underlying losses have narrowed thanks to efficiencies and £18m investment from Philippines-based owner Monde Nissin. Chief financial officer Nick Cooper said the firm is encouraged by early signs of progress on the back of a restructuring effort including redundancies, which brought £4m of costs last year.
The update on trading so far this year follows the publication of a 2024 accounts which show a near 9% fall in sales from £204.9m to £186.6m, and a narrowing of operating losses from £57.5m to £24.4m, which included an underlying operating loss of £12.2m and exceptional expenses of £12.2m. Continued decline in the meat-free market in the º£½ÇÊÓƵ and US and cost-of-living pressures on households were cited.
The numbers cover a period largely before ex-Heineken executive David Flochel was installed as CEO and before the launch of a two-year turnaround plan focussing on streamlining its commercial, research and development and support functions. There is also work to make its supply chains more efficient and flexible.
Mr Cooper said: "The numbers highlight the well-documented pressures in the º£½ÇÊÓƵ meat-free category, with sales down 9% year on year. But there were bright spots: growth in food service, a significant reduction in pre-tax losses to £28m (from £63m in 2023), and strong cash generation of almost £13m thanks to supply chain efficiencies. The loss figure included £12m of one-off costs tied to the start of the turnaround, leaving a £16m underlying pre-tax loss, an improvement on 2023. Support our parent Monde Nissin further bolstered the balance sheet, with £27m of funding used to cut debt.
"Since the 2024 books closed, the momentum has started to shift. In 2025, sales declines have slowed (-6% in Q1, -5% in Q2), Quorn has gained 1.6 pts of market share to strengthen its leadership of the º£½ÇÊÓƵ meat-free market, and gross margins continue to recover. Underlying losses have narrowed, and core Ebitda was positive in H1, supported by further efficiency gains and an additional £18m capital has been injected from Monde Nissin."
Vegan products supplied to KFC restaurants in Europe and Greggs in the º£½ÇÊÓƵ helped boost the firm's 'Quick Service Restaurants' business, which saw revenue grow by more than 3% to £6.2m. But retail revenues slumped more than 11% to £151.5m.
Quorn told BusinessLive it has stepped up marketing efforts this year with a string of campaigns launched including "Meals in Minutes" and "Mission Snack Swap", which is said to have driven double-digit growth in the brand's snacking range. Meanwhile "new look" Quorn Mince and Pieces, which are free from artificial ingredients, were introduced to supermarket shelves last month with a major push on frozen products scheduled this month.
A 10-week marketing drive will encompass TV, video-on-demand, social media, influencers, podcasts and PR - with hopes the brand can reach millions of consumers. Quorn has also promised its largest ever shopper marketing campaign in more than 1,500 supermarkets in the º£½ÇÊÓƵ.
Mr Cooper added: "2024 was a challenging year, but our focus is firmly on the future. We’re encouraged by the early signs of progress in executing our Transform to Win Together plan and we are excited to be the brand to bring fresh innovation and energy back into the category. With the backing of our owners, we’re confident in the path ahead."
