Marlow Foods Limited, the parent company of alternative protein company Quorn, has published its annual report for the year ended 31st December 2024.

Marlow Foods, which trades as Quorn Foods, manufactures, distributes and sells Quorn and Cauldron branded products, as well as mycoprotein as a food ingredient.

The group’s total 2024 revenue decreased by 8.9% to £186.7 million, which it said was a result of a “continued decline” in the meat free retail category in the UK and US markets, driven by cost-of-living concerns. However, it said this was partially offset by continued growth in foodservice, as well as a return to growth in quick service restaurants.

Its retail category experienced a decline in revenue, falling 11.2% from 2023’s revenue of £170.7 million to reach £151.5 million in 2024.

Marlow Foods highlighted that during 2024, it incurred costs that were “exceptional in nature” in relation to the commencement of a two-year transformation programme, which was designed to increase operating agility and cost efficiency.

The group generated gross profit of £31.9 million during the year, comprising underlying gross profit of £39.7 million partially offset by exceptional costs of £7.9 million relating to the supply chain impact of the transformation programme.

Underlying gross profit of £39.7 million was £3.2 million lower than the prior year due to lower sales volumes, with underlying gross margin improving 0.3% to 21.3% as supply chain cost control offset the gross margin impact of lower production volumes.

The group recorded an operating loss of £24.4 million, made up of an underlying operating loss of £12.2 million and exceptional expenses of £12.2 million. The underlying operating loss of £12.2 million was £1.6 million higher than the underlying prior year loss due to lower sales, gross profit and higher depreciation on the group’s fixed asset base, which it said was partially offset by cost savings from restructuring, lower marketing investment and tight cost control including reductions in selling and administrative expenses.

Nick Cooper, chief financial officer of Quorn, commented: “2024 was a challenging year, but our focus is firmly on the future. We’re encouraged by the early signs of progress in executing our Transform to Win Together plan and we are excited to be the brand to bring fresh innovation and energy back into the category. With the backing of our owners, we’re confident in the path ahead.”