Profits at Limerick infant formula plant Wyeth Nutritionals top €155m

The boom in infant formula exports to China last year contributed to pre-tax profits at Limerick based Wyeth Nutritionals more than doubling to $165m (€155m).

Last year, Ireland became the second largest exporter of infant formula to China, exporting 13,100 tonnes in the first half of the year alone.

Now, new accounts filed by Wyeth Nutritionals Ltd show that its profits soared as revenues increased by 11% to $584m.

Along with Abbott, Danone, and Kerry Group, the Nestlé-owned Wyeth Nutritionals is one of the main formula companies based here.

The directors’ report for Wyeth state that the increase in revenues was “driven by increased demand in the greater China area”.

The China market is expected to grow even more for the Irish-based players following China’s decision last year to abandon its controversial one-child policy.

The market is set to grow by 10% to 15%, with 1.5m-2m more babies born each year in China.

The plant at Limerick is licensed to produce infant nutritional products from more than 50m gallons of milk each year.

The accounts show that the firm last year recorded operating profits of $203.7m, up 62% from 2014.

It had an operating margin of 35%.

Staff numbers at the plant in Askeaton increased from 603 to 617, while staff costs dipped from €84.44m to €83.88m.

Pay to directors last year also fell, from €660,000 to €552,000.

After paying out a dividend of $112m in 2014, no dividend was paid last year.

Shareholder funds stood at $1.2bn, including $357m in accumulated profits.

It spent $12.4m on research and development in the year.