Monde Nissin has reported narrowing losses but continued falling sales from its meat-alternatives division, which the Quorn owner is planning to shake up.
During the three months to 30 September, Monde Nissin’s fiscal third quarter, the company’s Quorn Foods business unit generated a “core” net loss attributable to shareholders of 169m pesos ($2.9m), versus one of 213m pesos in the same period in 2023.
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However, Quorn Foods booked an 8.3% drop in reported net sales to 3.3bn pesos. On a comparable basis, sales were down 5%. Over the first nine months of the fiscal year, Quorn Foods’ net sales were down 5.6%, with Monde Nissin pointing to the “softness” of the category.
Last month, Monde Nissin appointed former Heineken executive David Flochel as the new CEO of Quorn Foods.
Flochel, whose career also includes stints at Mars and Unilever, joins the company this month.
Announcing the latest financial results, Monde Nissin CEO Henry Soesanto said: “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 organisation.
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By GlobalData“Alongside this, Marco has decided to step down as the CEO of Quorn Foods as he believes that the next phase of the business will benefit from new ideas and renewed energy.”
In the first nine months of the year, Quorn Foods generated what Monde Nissin calls a “core EBITDA” loss of 137m pesos. In the third quarter, the division generated a positive core EBITDA of 7m pesos.
Soesanto said Monde Nissin has a target for its meat-alternative business to be EBITDA positive in the 2025 financial year.
The group is aiming for the division to have total cash savings of £8m ($10.4m) in the 2024 and 2025 years. It expects recurring annual cash savings of £8m, the Monde Nissin chief executive said.
“The cash cost to implement will be approximately £8m in 2024 and 2025, which will be partially funded from the restructuring savings. We believe these actions will put the business on a stronger footing and better set up 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 to 2.5bn pesos.
Net sales for the division rose 5.1% to 17.71bn pesos.
Over the nine-month period, APAC BFB’s net sales increased by 4.3% to 51.05bn pesos, and core net income attributable to shareholders grew 25.8% to 8.1bn pesos.
Monde Nissin’s overall core net income attributable to shareholders for the first nine months rose by 31% to 7.5bn pesos.
