Food manufacturer Marlow Foods has published its annual report for the year ended 31st December 2023, reporting a revenue decline of 6.9% on the year.

Marlow Foods, which owns meat alternative brand Quorn, attributed its revenue decrease to a decline in sales of its meat alternative Quorn products. The 6.9% decline saw Marlow Foods’ revenue hit £204.9 million, down from the previous year’s £220 million.

In its retail category, revenue fell by 8.6% to hit £170.7 million, down from £186.7 million. Marlow Foods said inflationary pressures had a “major impact” in 2023, with the Group taking steps to minimise the impact of inflation through competitive sourcing, selective forward purchasing and internal efficiency initiatives, as well as through increasing the prices of some products.

The company also saw a pre-tax loss of £63 million, recording an annual operating loss of £57.6 million after tax.

“We have taken continuous actions to control our costs, but as we always seek to minimise price increases and protect affordability for our consumers, those dynamics resulted in making a loss.”

Marco Bertacca, CEO of Quorn, said: “2023 was a challenging year where high inflation and interest rates continued to put pressure on consumers and on the cost of producing our great food. In this difficult context, the key markets in which we operate were down and we recorded total group sales that declined 6.9% to £204.9 million, along with an underlying operating loss of £10.6 million in the year.”

He said the company had increased its share within the UK retail market by 0.6%, with Quorn and Cauldron accounting for nearly a third of UK Total Meat Free category value.

Bertacca continued: “Continued inflationary pressure on our input costs in 2023 did have a significant impact. We have taken continuous actions to control our costs, but as we always seek to minimise price increases and protect affordability for our consumers, those dynamics resulted in making a loss.

“Despite these pressures, we continue to invest in successful innovation and new product launches. In June 2024 we relaunched our snacking range with improved products, optimised pack sizes and increased shelf-life, thus reducing food waste for retailers and consumers.”