Marlow Foods Posts Mixed Results, Shows Progress in Turnaround
Marlow Foods, the parent company of Quorn and Cauldron Foods, has seen a mixed bag of results. Despite a 9% decline in sales to £187M in 2024, the company nearly halved its post-tax losses to £27.9M, indicating progress in its turnaround efforts.
The company's struggles were largely due to an 11% drop in retail sales, but it managed to maintain a 32% market share in the UK. Marlow Foods also gained market share in the UK, increasing its share by 1.6 percentage points. This positive trend was supported by a 2.5% rise in foodservice sales to £28.6M, driven by partnerships with KFC and Greggs.
The company's 'Transform to Win Together' plan, initiated to increase operating agility and cost efficiency, seems to be bearing fruit. Despite a 7% decrease in annual underlying gross profit, supply chain cost control boosted the underlying gross margin to 21%. Losses for Quorn and Cauldron were reduced by optimizing supply chains and expanding product lines. Looking ahead, Marlow Foods plans a major marketing campaign in October 2025 to drive sales and reach millions of consumers. The company's cash on hand also increased by 21% to nearly £21M in 2024.
While Marlow Foods faces challenges, such as a slowing decline in sales for Quorn and Cauldron, the company is showing signs of recovery. With a strong focus on cost efficiency, market share growth, and upcoming marketing efforts, Marlow Foods is positioning itself for a potential turnaround.
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