Abbott’s Irish subsidiary’s pre-tax profits fall 39%

PRE-TAX profits at the main Irish arm of medical and pharmaceutical product giant Abbott last year fell 39% to €240.1m.

Accounts just filed with the Companies Registration Office by US-owned Abbott Laboratories Vascular Enterprises Ltd show the company saw a drop in revenues and royalty income.

Revenues at the Dublin-registered firm decreased by 6% from €275.6m to €258.4m, with cost of sales increasing from €224.4m to €265.7m in the 13 months to the end of December 31, 2010.

The prior year results were for a 12-month period.

The company recorded a gross loss of €7.2m last year compared to a gross profit of €51.1m in 2009.

However, net royalty income totalling €243.9m compared to €331.5m in 2009 contributed to pre-tax profits of €240.1m following pre-tax profits of €393.8m in 2009.

The company’s performance was negatively impacted by Abbott in 2011 resolving prior years’ international and US tax positions, resulting in the company reimbursing an affiliate company €314.5m.

According to the directors’ report, the company’s directors “anticipate the company trading position will continue to improve in the future”.

The company paid a dividend last year of €7m, which was declared in 2009 with no dividend declared last year.

The principal activity of the company involves the distribution of medical and related products, distribution of nutritional products, investment holding and undertaking research and development.