Lab to ramp up productions after 15% decline in profits

Production is being ramped up at the Cork-based Alcon Laboratories after it reported a 15% decline in pre-tax profits to €1.95m for last year.

According to accounts filed with the Companies Office, the revenues of Alcon Laboratories Ltd increased by 6%, from €30.4m to €32.4m, in the 12 months to the end of December last.

Alcon’s principal activity is the manufacture of intraocular lens (IOLs). These are used to replace the natural lens removed during cataract surgery.

The directors explain, in their report attached to the accounts, that “IOL demand is based on medical need as induced by the removal of a cataract”.

On the firm’s future developments, the directors state that “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.”

According to the directors’ report, “the directors are satisfied with the performance of the company during the year”.

Shareholder funds at the firm last year decreased to €10.1m, a figure which included €3.1m in accumulated profits.

Operating profits last year decreased from €2.94m to €2.34m. The directors state: “The decrease reflects changes in product mix and cost recovery.”

The directors confirmed there was a dividend payout of €3m in 2012.

The figures show that Alcon’s cost of sales last year increased from €27.5m to €30m.

Alcon increased its number of employees from 341 to 383, according to the figures. Staff costs rose in kind, from €17.3m to €19.2m. A breakdown of staff shows that 217 work in production at Alcon, there are 154 in ‘other’, and 12 are in direct labour.

The figures show that emoluments to directors last year increased from €294,000 to €347,000.

The profit last year takes account of non-cash depreciation costs totalled €3.9m

On Apr 8, 2011, Novartis AG bought out Alcon for $12.6bn. All of the company’s sales during the year were to other companies in the Novartis group.