The UK arm of healthy drink maker Yakult said a “weakening economy influenced by inflation and the general hostile geopolitical picture” impacted its finances during 2023.
The company, which is headquartered in South Ruislip, Middlesex, added that its supply chain “continued to be hit by costs on various fronts” and that its market share dropped during the year.
Yakult’s parent company is headquartered in Tokyo, Japan, and was the product was first sold in 1935.
According to newly-filed accounts with Companies House, Yakult’s UK arm made a turnover of £21.4m in 2023 down from £22.7m, while its pre-tax profits went from £385,072 to £379,914.
A statement signed off by the board said: “Revenue volumes were below budget for the year due to a weakening economy influenced by inflation and the general hostile geopolitical picture developing as the year progressed.
“Supply chain in particular continued to be hit by costs on various fronts arising from inflation during the year.”
Yakut added that its UK market share dropped from 9.3 per cent to 8.3 per cent on a like-for-like comparable basis on value terms while its value growth fell by 4.9 per cent year-on-year and its volume growth declined by 7 per cent.
The company said the falls were due to a number of product and brand changes in 2023. It said the while the changes have not provided immediate results, “we expect there to be medium to long term benefits”.
Yakut added: “Revenue has fallen compared to the previous year due to the market share of the category declining.
“Macro-economic factors played a part on the consumer basket and choice presented to the consumer in the context of product changes embarked on in 2023 and the general wide picture of inflation.
“Overall profitability is monitored by controlling costs in a challenging period where inflation as predominate across the cost base and in particular the supply chain and staff costs.”
Yakult expanded into Europe in 1994 and also sells its products in the likes of Austria, Belgium, Denmark, France, Germany and Italy as well as Luxembourg, Malta, the Netherlands, Spain and Switzerland.
The company’s factory in the Netherlands is where all the Yakult sold across Europe is made. Yakult first launched in the UK in 1996.