Despite challenges in the meat-alternatives market, Quorn owner Monde Nissin saw an improvement in second-quarter sales.
In the three months leading to 30 June, Monde Nissin reported a rebound in gross profits and margins but a widening in EBITDA and net losses.
The company’s core Asia Pacific branded food and beverage business (APAC BFB) experienced a 5.7% increase in comparable sales to 16.46bn pesos ($287.2m).
CEO Henry Soesanto highlighted the gradual improvement in the company’s meat-alternative business, focusing on optimizing costs and efficiencies to maintain EBITDA neutral or better for the year.
Soesanto also mentioned the modest top-line growth and continued expansion of gross margin and core net income in the APAC BFB segment.
During a call with analysts, Soesanto mentioned an improved margin in the meat-free sector as input costs eased.
In terms of meat-free sales, Monde Nissin saw a 2.7% decline in the second quarter, compared to 4% in the previous quarter. The CFO noted a 9% drop in underlying sales.
The UK retail market continued to decline, impacting Quorn’s market share and overall top-line trajectory.
Quorn’s meat-alternative sales in UK retail fell by 10.2% in the quarter, leading to a slight erosion in market share.
On the positive side, foodservice sales increased by 8% with out-of-home sales contributing significantly to the overall category performance.
Gross profit in the meat-free division rose by 3.9% to 778m pesos, signaling a rebound in margins.
EBITDA remained in the negative at 84m pesos, but improvements were seen compared to the previous year.
Net losses in the meat-free category were reported at 270m pesos, indicating challenges in the market.
Looking ahead, Quorn CEO Marco Bertacca emphasized the importance of strengthening gross margins to drive future growth.
While facing volume pressures and market challenges, the company remains committed to optimizing its operations for long-term success.
