Losses down at baby formula company Kendal Nutricare

Kendal Nutricare, the UK-based infant formula company owned by Monaghan native Ross McMahon, saw operating losses narrow to £635,000 (€742,000) for the 12-month period to the end of March 2018. The company had made operating losses of £1.7m (€1.95m) the previous year, according to recently filed accounts for the business.

However, a note in the accounts states that the business has made a profit in the nine-month period to December 2018 and will generate full-year profits for the 12-month period to the end of March 2019.

Kendal reported a 43% increase in sales to just under £14m (€16.3m) for its 2018 financial year. This was driven by a major expansion in infant formula sales to markets in Asia (+122% to £3.4m), Europe (+15% to £7m) and to Africa and the Middle East (+50% to £2.2m). Sales in the UK market increased 85% during the year to reach £1.4m after the company secured nationwide listings with supermarkets Asda, Morrisons and Sainsbury’s.

Kendal manufactures and packs baby cereals for Heinz and also sells its own range of infant formula products under its brand Kendamil. The company said it secured customs approval from Chinese authorities in 2017 to export its Kendamil and Kendamil Organic infant formula brands to China.

“A trade mission to China with the British prime minister Theresa May in early 2018 really helped to boost the Kendamil brand profile,” noted McMahon in his director’s report.