Quorn owner Monde Nissin has reported another decline in meat-free sales; however, EBITDA turned positive in the second quarter of 2025.
Furthermore, it was a more optimistic picture for Monde Nissin, based in the Philippines, regarding net profit for the category, as losses narrowed for both the quarter and the first half of the year.
While “softness” in consumer demand continues to affect the publicly listed company’s meat-alternatives segment, CEO Henry Soesanto expressed a more positive outlook. Notably, impairment charges that had previously burdened the business were absent in the latest results.
“We are pleased to report continued improvement in our meat-alternative business during the second quarter. Our gross margin expanded over 200 basis points, and we achieved positive EBITDA for the quarter after funding A&P investment,” Soesanto stated on July 6.
Sales of meat-free products for the quarter ending June 30 dropped by 2.1% to 3.29 billion pesos ($57.5m) on a reported basis, representing a smaller decline compared to last year’s 2.7%. Over the first half, however, the sales decrease of 3% was more pronounced than the 0.6% reported in the same period of 2024.
As we enter the third quarter, Monde Nissin, primarily known for the Quorn brand in the meat alternatives market, has observed signs of recovery.
“In July, we saw a modest year-over-year increase in meat-alternative sales, marking our first growth after several years of decline,” Soesanto reported.
“While it is just one month, it serves as an encouraging sign amid ongoing category headwinds. We remain committed to stabilizing performance and adapting to evolving consumer preferences.”
Meanwhile, gross profit for the segment increased by 6.4% to 828 million pesos, building upon the 3.9% growth reported in the second quarter of last year.
Year-to-date gross profit grew 8.5% to 1.6 billion pesos, following a 5.6% decline in the corresponding six months.
The net income loss after tax for meat-free products narrowed to 157 million pesos in the second quarter, down from 270 million pesos lost previously. Similarly, losses declined to 215 million pesos from 486 million pesos over the first half of the year.
Core EBITDA achieved a positive outcome of 24 million pesos for the quarter, in contrast to an 84 million peso loss a year earlier. For the first six months of 2025, EBITDA was also positive at 165 million pesos compared to a 144 million peso loss.
Monde Nissin highlighted that the improvement in the gross margin for meat alternatives to 25.1% was “driven by transformation benefits, lower inventory, lower input costs, and targeted selling price increases, partially offset by the impact of lower production volumes.”
Although meat-free products represent a relatively small portion of Monde Nissin’s overall sales and profits, the mainstream Asia Pacific branded food and beverage (APAC BFB) business dominates, featuring items such as Lucky Me noodles, SkyFlakes crackers, and Nissin cookies.
Group sales across both divisions rose 3.8% in the second quarter to 20.6 billion pesos; of this, APAC BFB contributed 17.2 billion pesos, reflecting a 5% increase.
First-half total sales reached 41.5 billion pesos, up 3.3%, with APAC BFB accounting for 34.9 billion pesos, marking a 4.6% improvement.
Despite these positive trends, Monde Nissin’s net profit after tax echoed a less favorable performance for the group and its core business. Overall, net profit fell 18.7% in the quarter to 1.8 billion pesos, while the APAC BFB division saw a 21.2% drop to 2 billion pesos.
For the first half, declines persisted, with the two business units posting reductions of 7.3% and 11.5%, respectively, with end results of 4.7 billion pesos and 4.9 billion pesos.
