Profits rise by 5% to €50.6m at Genzyme’s Irish division as revenues top €1.55bn

Pre-tax profits at the Irish arm of global medical technology giant Genzyme last year increased by 5% to €50.56m as revenues topped €1.55bn.

Mon, 19 Oct, 2015 - 01:00

Gordon Deegan

Accounts filed by Genzyme Ireland Ltd, with the Companies Office, show the firm recorded the 5% increase in pre-tax profits as revenues increased marginally, going from €1.533bn to €1.552bn.

The firm paid corporation tax of just €75,000 on its profits in 2013, however last year, the firm’s corporate tax bill jumped to €5.9m. Gross profits of €95.6m at Genzyme were hit last year by the company’s royalty charge topping €573m.

However, this was lower than the charge of €671.6m in the previous 12 month period.

Established in Waterford in 2001, Genzyme Ireland is the primary distribution centre for many of Genzyme’s major treatments.

Its products and services are focused on rare inherited disorders, kidney disease, orthopaedics, cancer, transplant and immune disease, and diagnostic testing. Genzyme Ireland increased its employee numbers from 487 to 490 last year, with staff costs totalling over €39m.

The plant at Waterford has shown rapid growth in recent years, with turnover increasing more than sevenfold since 2007, when revenues of €219.3m were generated.

The increase in profits last year is attributable to the increase in business and its R&D spend last year declining sharply, going from €5.25m to €1.64m; with its non-cash depreciation costs decreasing from €21.22m to €20.45m.

Emoluments to five directors that served during the year last year reduced from €1.55m to €897,000. Cost of sales increased from €1.42bn to €1.45bn last year, while gross profit fell from €105.8m to €95m.

The profits, secured last year, resulted in the company having €252m in accumulated profits to the end of December last. It had total shareholder funds of €376m.

A breakdown of the numbers employed show that 186 are engaged in manufacturing; 154 in quality, research and development; 70 in materials, 42 in materials and 38 in engineering.