Nestlé blames a 32% dent in UK profits on sterling’s slide and costlier imports
- A financial restructuring also appears to have hit UK profits
- The Swiss manufacturer reported a 32% fall in profit to £184.7m
- Turnover at the business hit £1.6bn, while global sales last year were £72bn
Nestlé has said that the fall in the value of sterling contributed to a hefty slide in profit at its UK division
Nestlé has said that the fall in the value of sterling contributed to a hefty slide in profit at its UK division.
The food producer, which filed its UK accounts last week, said that profit at Nestlé UK last year slipped 32 per cent after the currency swing meant that importing products from Europe became more expensive.
A financial restructuring, which included the transfer of a dividend payment from its Irish subsidiary, also appears to have hit UK profits.
The company said: ‘There is still significant uncertainty about the withdrawal process [from the EU], its time frame and the outcome of negotiations about the future arrangements between the UK and the EU.
‘As a result of this uncertainty, the performance of the company and its subsidiaries may be adversely affected.’
It added: ‘The process and eventual outcome of the negotiations will also introduce exposures to the economy as a whole, to which the performance of the company is inherently linked. In the short term there is some exposure to an upturn in inflation connected to the weakened sterling.’
The Swiss coffee and confectionery manufacturer reported a 32 per cent fall in profit to £184.7 million for the 2017 calendar year, according to accounts it filed at Companies House last week.
Turnover at the business hit £1.6 billion. Nestlé’s global sales last year were £72 billion.