Pre-tax profits at Merck fall 26%

Pre-tax profits at an Irish arm of pharmaceutical giant, Merck last year decreased by 26% to €141m, new figures show.

Accounts filed by Organon (Ireland) Ltd show that pre-tax profits dropped by €50m from €191m after revenues decreased by 2.6% from €813.8m to €792.6m in the 12 months to the end of December last.

Numbers employed by the Dublin-based firm last year increased by 70 to 591 with the firm’s staff costs totalling €38.9m.

The Swords plant sells to 44 countries around the world and its main activities on site relate to the manufacture of women’s health products.

The plant is part of the MSD group in Ireland — formerly known as Merck Sharp and Dome — and the group employs over 2,000 in Ireland today.

The chief factor behind the drop in profit was a €24m increase in the cost of sales going from €605m to €629.8m while administrative expenses increased from €15.5m to €21.1m.

Organon has branches in Ireland and Switzerland and according to the directors’ report “the directors consider that during the year, the development of the business was in line with expectations and that major production and sales targets were achieved”.

The firm did not pay a dividend last year after paying a dividend of €32.8m in 2011.

The figures show that the firm’s accumulated profits totalled €727m.

The firm’s total shareholder funds totalled €1.1bn — including a capital contribution of €374.3m.

The firm’s largest market is Europe accounting for 62% or €497m of revenues with €99.1m of the firm’s revenues generated in the US while €155.5m of revenues was generated in ‘other’.

The figures show that €40.2m of revenues was generated in Asia.

The profit last year takes account of non-cash depreciation and amortisation costs totalling over €10m.