Pre-tax profits of Wyeth Nutritionals, an Irish infant formula company of Swiss food giant Nestle, fell 13% last year to 12.49 million euros. New accounts filed by Wyeth Nutritionals Ireland Ltd show sales also fell, down 6% to € 313.19 million.
Revenue declined despite the fact that infant formula volumes destined for China remain relatively stable compared to 2019. Company directors said the reduction is due to a change in financial and supply flows introduced. in June 2020.
Wyeth Nutritionals, based outside Asseaton in West Limerick, incurred an asset impairment charge of € 39.4 million and restructuring costs of € 44.4 million in 2020 , but these costs were re-invoiced to another Nestlé company.
The directors said they were satisfied with the performance indicators for the year. The staff employed at the plant last year fell from 605 to 592, with staff costs totaling 80.52 million euros. The remuneration of directors, including pension contributions, increased by 27% last year, from € 811,000 to € 1.03 million.
The company did not pay a dividend. It paid 66.59 million euros in dividends in 2019.
The company’s research and development expenses for the last year amounted to 11.1 million euros.
Last year, Nestlé Ireland Ltd wrote down its investment in Wyeth Nutritionals by € 59.6 million. It came a year after the Swiss food giant reduced the value of its investment in Wyeth Nutritionals Ireland Ltd. by € 200 million.
The depreciation pushed Nestlé’s Irish arm to a pre-tax loss of 55.99 million euros last year, according to newly filed accounts. Nestlé Ireland recorded an operating profit of 3.6 million euros before taking into account the depreciation. Its turnover increased by 2.45% last year to 99.58 million euros.