Profits double at Nestlé’s Irish infant formula business

Wyeth Nutritionals, the Irish infant formula business of Swiss food giant Nestlé, saw profits more than double last year as turnover jumped on the back of increased demand in China.

However, a second Irish subsidiary – Nestlé Ireland Limited – put in a less impressive performance as it slipped back into the red.

Wyeth, which produces a range of powder and liquid “ready to feed” infant formulas – including brands such as S26 Gold, Promil Gold and Illuma – recorded a $165.9 million (€156.5 million) pretax profit for 2015, according to accounts recently filed at the Companies Office.

This compares with $76.7 million in 2014, a year in which profits more than trebled from $25 million.

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Sales at the Irish unit, which was acquired from Pfizer in an $11.85 billion deal in 2012, rose 11 per cent to $584.4 million from $525.8 million a year earlier.

Directors’ remuneration

The company did not pay out a dividend last year, having paid out $112.3 million to its parent in 2014.

Staff numbers averaged 617 last year with related costs, including wages and salaries, totalling $83.8 million.

Directors’ remuneration declined to $552,000 – having jumped by a third to $610,000 in the previous year.

Irish subdiary

Separately, recently filed accounts for Nestlé Ireland show the company slumped to a €18 million pretax loss in 2015, after recording a €68.5 million profit a year earlier – on the back of an €88.9 million income boost from fixed asset investments.

The company, which recorded a €22.8 million loss in 2014, reported a turnover of €105 million last year – up from €99.6 million – as the cost of sales rose to €86.7 million from €81.3 million.

The subsidiary’s parent is the largest food company in the world measures by revenues. Its brands include Kit Kat, Nescafé, Nespresso, Smarties, GO-CAT and Shreddies.

The group has 436 factories in 85 countries, and employs around 335,000 people worldwide.

Nestlé Ireland employed 60 people locally last year with staff costs, including directors’ pay, totalling €5.5 million.