Janssen reports sharp increase in profits

A subsidiary of US-headquartered Johnson & Johnson, Janssen recorded post-tax profits of €3.2bn after paying corporation tax of €396m.

Pre-tax profits at the main Irish unit of pharma giant, Johnson & Johnson last year surged by €1.32bn or 58% to €3.596bn.

New accounts filed by the Cork-based Janssen Sciences UC show that the business recorded a sharp increase in profits as revenues rose by 9% from €8.05bn to €8.79bn in the 12 months to the end of January 2 last.

A subsidiary of US-headquartered Johnson & Johnson, the Ringaskiddy registered firm recorded post-tax profits of €3.2bn after paying corporation tax of €396m.

The firm enjoyed the rise in profits after the company reversed a 2020 non-cash impairment of €635.8m relating to its investment in subsidiary Janssen Irish Finance Unlimited Company.

The increased profit last year also takes account of a €137m gain on the sale of intellectual property offset by finance expenses of €294.84m.

Dividend

The directors disclose that the firm proposed a dividend payout of €5bn on November 15 last to Janssen R&D Ireland UC.

Numbers employed by the business last year increased from 725 to 835 and staff costs totalled €98.27m.

Twelve directors — 10 of whom are Irish — served on the firm’s board last year and shared pay of €3.05m, which included pension contributions of €259,000.

The principal activity of the company is the research, development, manufacture, and commercialisation of pharmaceutical products for the treatment of various diseases.

The firm also engages in the manufacture of biomedical products.

A breakdown of the firm’s revenues show that €153m in sales were recorded in the Republic of Ireland, €4.45bn in North America, €4.09bn in EMEA; €52.46m in Latin America and €33.4m in Asia Pacific.

The profit last year takes account of €902.07m in non-cash amortisation costs and €1.18bn in Research and Development (R&D) costs.

The company had shareholder funds of €36.1bn on January 2nd which was an increase of €6.5bn on the financial position one year previous.