Yoghurt maker Lactalis Nestlé has cited Brexit costs as a key factor behind a 40% slump in its profits last year.
In the year to 31 December 2021, the joint venture between Nestlé and French dairy giant Lactalis saw year-on-year turnover rise slightly, from £115.3m to just over £116m, according its annual report posted at Companies House.
But increased logistic and admin costs linked to Brexit saw pre-tax profits fall by 42.9% – or £2.1m – to £2.8m for the Rachel’s Organic and Lindahls owner.
Despite this slowdown, the company said it had continued to invest in improving the quality of products, which had been reflected in customer feedback.
Although there was a minor reduction in fulfilment and on-time delivery of customer orders – 94.9% compared with 96.1% – the company claimed this was due to “unique disruptions” that were not expected to occur again in its “effective supply chain”.
Product demand had also remained high, the supplier added. But the market remained “challenging and we don’t expect this to change in the immediate future”, said Lactalis Nestlé director Anthony Sharpe.
“Over the next 12 months our focus is to maintain our momentum through maintaining relationships with our customers and building a path to future growth.”
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