Monde Nissin, a global food company that owns the vegetarian brand Quorn, has reported a 4% decline in Q1 revenue for Quorn. Despite challenges in the market, the company remains focused on maintaining profitability.
The meat alternative Q1 revenue decreased by 4% to Php 3.4 billion on a constant currency basis. Monde Nissin cited “category softness” as a contributing factor to the decline. Additionally, the reported Quorn revenue for Q1 was down by 2.7%, with the UK seeing a comparable decline of 2.8% on a constant currency basis. This was attributed to a “challenging retail market.”
Furthermore, Quorn’s Q1 gross profit experienced a 14.5% decline, with the gross margin decreasing by 20%. This was primarily due to a “production volume decline” as the company sought to reduce inventory. Despite these challenges, Monde Nissin mentioned that some of the impact on fixed costs recovery was offset by reductions in input costs.
Henry Soesanto, the chief executive officer of Monde Nissin, expressed the company’s commitment to managing costs efficiently and seeking operational efficiencies. The goal is to maintain EBITDA (earnings before interest, taxes, depreciation, and amortisation) at a flat or improved level for the year.
In conclusion, while facing headwinds in the market, Monde Nissin is determined to navigate the challenging landscape and drive sustainable growth for its Meat Alternative business.
