The UK arm of coffee giant Nespresso shed more than 200 jobs as it shut locations across the country in 2024, it has been confirmed.
The business reduced its headcount from 716 to 499 during its latest financial year as it closed 11 of its sites.
In new accounts filed with Companies House for 2024, Nespresso said the move was designed to streamline its operations and “adapt to changing shopping preferences for immersive brand experiences”.
The results have also revealed that Nespresso’s turnover increased in the year from £338.6m to £340.7m while its pre-tax profit also nudged up from £14m to £15m.
The growth of Nespresso’s pre-tax profit means that metric has increased for a 12th year in a row while its turnover has continued its run of increasing every year that records are available on Companies House.
The York-based arm’s UK turnover increased in 2024 from £306.1m to £309.9m while its sales in the rest of the world dipped from £32.5m to £30.8m.
The division issued a dividend of £10.3m to its parent company in 2024, down slightly from the £11m it paid out in 2023.
Nespresso concerned over indirect taxes
A statement signed off by the board said: “In 2024 the company saw a one per cent increase in sales driven by the ongoing success of the Vertuo system in its business-to-consumer division coupled with a very strong growth in its business-to-business activities.”
The company added: “Nespresso also entered the on-the-go coffee market with the launch of a new coffee shop concept titled ‘The Nespresso Bar’ at a location close to Liverpool Street station in central London.”
On its future, the business said: “The external environment remains extremely challenging.
“Inflationary pressures, increased costs, the impacts of climate change and a range of supply chain complexities and geo political uncertainties will continue to put pressure on the company.
“Increasing commodity costs and aspects such as rising indirect taxes including extended producer responsibility costs will be key challenges for the whole industry.
“The company prides itself on being flexible and adaptable to the external context in order to continue providing high quality and good value products to the consumer.”
Nespresso is headquartered in Switzerland and was founded in 1986.