Quorn Foods chief executive David Flochel expects the UK meat-free business’ sales volumes to "stabilise" next year.
The latest accounts of Monde Nissin show the Philippines parent's Meat Alternative division, which houses Quorn, reported a 1.2% decline in revenue for the first nine months of 2025 but a 2.5% increase in the third quarter.
On a constant-currency basis, the division's revenue fell by 3.9% for the first nine months and by 1.1% in the third quarter.
Speaking to analysts, Flochel said that the meat-alternative market remains “challenging and still negative” but added Quorn was "winning shares" and seeing "positive momentum" from its snacking products.
He said: “I would expect that, in the course of 2026, we should be able to stabilise the volume”.
Monde Nissin has seen sales and profits at Quorn, which it acquired in 2015, come under pressure in recent quarters, hit in part by slowing demand for meat-free products in the UK.
Flochel said Quorn had seen “significant growth" from its snacking business during the third quarter, with distribution helped by "extended shelf life and broader pack range".
He added Quorn had also used "targeted promotions", improved merchandising in store, driving availability and investment in advertising.
“This has led to a 23% year-on-year growth in chill snacking in Q3, which has taken the total Quorn chilled business to 3% growth,” Flochel said.
Sales of Quorn's frozen products were flat during the third quarter and the company is investing in marketing to support sales.
"Our Quorn frozen ingredient SKUs are our key volume SKUs, and therefore are critical to finally arrest the volume decline," Monde Nissin CEO Henry Soesanto said.
The Meat Alternative division’s gross profit for the first nine months grew 15.2% to 2.5bn pesos ($424m), while third-quarter gross profit increased by 29.3%. Its core EBITDA for the third quarter reached 255m pesos, compared to 7m pesos a year earlier, supported by improved gross profit and lower operating costs.
Core EBITDA was in the black over the nine months at 420m pesos versus a loss of 137m pesos in the first nine months of 2024.
Flochel added: "When it comes to margin improvements, I think it's very important to mention here that they are driven by sustainable transformation benefits and locked in commodity prices as well.
"We expect gross margin improvement to continue through to 2026. However, we're also likely to see quarter on quarter fluctuation driven by seasonal mix or promotional pattern. Long story short, I would say we are confident in the trajectory of the business but we should not expect a complete, smooth, linear quarter on quarter progression."
