Monde Nissin has reported a reduction in losses but continues to experience declining sales within its meat-alternatives division. The owner of Quorn is actively planning a strategic overhaul of this segment.
In the fiscal third quarter, which ended on September 30, Monde Nissin’s Quorn Foods division recorded a “core” net loss attributable to shareholders amounting to 169 million pesos (approximately $2.9 million). This figure marks an improvement compared to the loss of 213 million pesos recorded during the same quarter the previous year in 2023.
Despite the narrowing losses, Quorn Foods experienced an 8.3% decline in reported net sales, amounting to 3.3 billion pesos. On a comparable basis, the sales decreased by 5%. Over the first nine months of the fiscal year, net sales for Quorn Foods decreased by 5.6%. Monde Nissin attributed these challenges to the “softness” within the category of meat alternatives.
In a significant leadership move last month, Monde Nissin appointed former Heineken executive David Flochel as the new CEO of Quorn Foods. Flochel’s impressive background includes experience at major corporations such as Mars and Unilever.
In an announcement regarding the latest financial performance, Monde Nissin CEO Henry Soesanto stated, “Given the continued challenges in the meat-alternative business, we plan to streamline costs and simplify operations through a restructuring and business transformation that will affect all parts of the organization.”
“Alongside this, Marco has decided to step down as the CEO of Quorn Foods, believing that the next phase of the business will benefit from new ideas and renewed energy.”
Over the first nine months of the year, Quorn Foods generated a “core EBITDA” loss of 137 million pesos. Interestingly, in the third quarter, the division recorded a positive core EBITDA of 7 million pesos.
Soesanto emphasized, “The company has set a target for its meat-alternative business to achieve EBITDA positivity in the 2025 financial year.” He added that the group aims for the division to realize total cash savings of £8 million ($10.4 million) in both 2024 and 2025. Recurring annual cash savings are expected to reach the same amount, as stated by the Monde Nissin chief executive.
“The cash cost to implement these measures will be around £8 million in 2024 and 2025, which will be partially covered by the restructuring savings. We believe these actions will provide the business with a stronger foundation for future success.”
Meanwhile, Monde Nissin’s Asia Pacific branded food and beverage (APAC BFB) business reported a 5.2% increase in core net income attributable to shareholders in the third quarter, totaling 2.5 billion pesos. Furthermore, net sales for this division rose by 5.1% to 17.71 billion pesos.
Over the nine-month period, APAC BFB experienced a 4.3% increase in net sales, amounting to 51.05 billion pesos, and core net income attributable to shareholders surged by 25.8% to 8.1 billion pesos.
Monde Nissin’s overall core net income attributable to shareholders significantly increased by 31% during the first nine months of the year, totaling 7.5 billion pesos.
