Pre-tax profits at Alcon drop 16.5%

Production is ramping up at the Cork-based Alcon Laboratories as the firm reports a decline of 16.5% last year in pre-tax profits to €2.3m.

According to accounts filed with the Companies Registration Office, revenues at Alcon Laboratories Ltd increased by 7% from €28.4m to €30.4m in the 12 months to the end of Dec 2011.

The principal activity of the firm is the manufacture of intraocular lens (IOLs). IOLs are used to replace the natural lens that is removed during cataract surgery.

The directors explain that “IOL demand is based on medical need as induced by the removal of a cataract.”

“The company will continue to develop its IOL product and expand its market. The company is presently experiencing a product ramp up, which is expected to continue in the medium term.”

The report states that “the directors are satisfied with the performance of the company during the year”.

Shareholder funds at the firm last year increased to €11.1m, including €4.5m in accumulated profits.

Operating profits last year decreased from €3.13m to €2.94m. The directors state: “The decrease reflects changes in product mix and cost recovery.”

No dividend was paid in 2011, but the report states that the “directors will recommend the payment of a dividend in 2012”.

The firm’s cost of sales increased from €25.3m to €27.5m. A major contributor to the drop in pre-tax profits was interest payments totalling €629,076 compared to €363,554 in 2010.

On Apr 8, 2011, Novartis bought out Alcon for $12.6bn. According to the directors’ report “there has not been any significant impact on the operations of Alcon Laboratories Ltd as a result of this change in ownership during the year”.

Staff costs last year increased from €14.1m to €16.5m as employee numbers rose from 300 to 341. The figures show that emoluments to directors last year increased from €277,650 to €294,332.