Servier profits decrease to €61.8m

Pre-tax profits at the Irish unit of French pharma giant, Servier last year dipped by 2.7% to €61.8m in spite of a jump in revenues.

New accounts just filed by Servier (Ireland) Industries Ltd show that pre-tax profits dropped by €1.74m to €61.8m as revenues increased by almost €26m. The firm recorded revenues of €648.8m for the 12 months to the end of September last.

Numbers employed at the firm’s Arklow plant last year decreased from 436 to 412.

The firm paid a dividend of €50m to its parent last year following a payout of €60m in 2014.

“During the year, sales increased slightly from the previous year. This increase was driven by increased production overall on new and existing products. The group expects to slightly increase its sales levels and further improve its financial performance in the coming year,” the director’s report states.

The firm’s tax bill was €7.74m for the year and the figures show that after the post-tax profits of €54m and dividend pay-out, the firm’s accumulated profits rose from €222m to €226.23m.

The firm’s total shareholder funds last year stood at €244m that included €71.88m in cash. The filings show that with the decrease in employees, staff costs fell from €26.7m to €26.2m.

Emoluments to directors decreased from €246,650 to €46,650. The profit figure takes account of non-cash depreciation costs of €8.44m.

The firm’s cost of sales last year increased from €477.9m to €488.2m with operating expenses increasing from €80.2m to €98.8m. The firm’s operating profits declined by 4.6% from €66.1m to €64.62m.

A breakdown of the numbers employed show that 330 are engaged in production, 54 in administration and 28 in sales and marketing. In 2012, Servier’s Arklow site received a boost following the European Medicines Agency giving approval for Servier’s drug, Procoralan to treat patients withchronic heart failure.

The drug — produced in Arklow — had already been used to treat angina.