Profits at Johnson & Johnson's Cork facility decrease by 35%

Revenues at the main Irish arm of the pharmaceutical giant fell by 2%, from €11.6bn to €11.39bn, last year

During the year, Janssen paid a dividend of €5.9bn to parent firm Janssen R&D Ireland Unlimited Company.

Pre-tax profits at the main Irish arm of pharmaceutical giant Johnson & Johnson declined last year by 35% to €4.47bn.

Accounts filed by Janssen Sciences Ireland UC show that profits decreased as revenues dipped by 2%, from €11.6bn to €11.39bn.

During the year, the firm paid a dividend of €5.9bn to parent firm Janssen R&D Ireland Unlimited Company.

The pre-tax profits for 2024 of €4.47bn follow pre-tax profits of €6.9bn in 2023, when the firm’s profits benefited from a €3.2bn dividend from a subsidiary. 

The Ringaskiddy-registered company recorded post-tax profits of €3.93bn in 2024 after incurring a corporation tax charge of €544.13m. This followed a corporation tax charge of €616m in 2023.

Trade tensions and tariffs

On risks to the business, the directors state that the global geopolitical landscape continues to be unpredictable, with tensions that have the potential to disrupt markets and supply chains. They said “global trade tensions and tariffs could introduce new cost pressures, particularly on raw materials; these factors may put additional strain on business costs”.

In a post-balance-sheet event, the directors disclose that on June 23 this year the company proposed to make a distribution of €5.2bn to its sole shareholder, GH Biotech Holdings Limited.

The firm recorded an operating profit last year of €4.7bn, while €206.3m in other finance expenses and €40.47m in net interest payments reduced profits to a pre-tax profit of €4.47bn.

Rise in staff numbers

Numbers employed by the business increased from 1,188 to 1,309. Staff costs rose from €132.45m to €162.34m.

The principal activity of the company is the research, development, manufacture, and commercialisation of pharmaceutical products for the treatment of diseases. It also engages in the manufacture of biomedical products.

A breakdown of revenues shows €539m in sales were recorded in the Republic of Ireland, €5.4bn in North America, and €5.45bn in EMEA.

The profit last year takes account of €913m in non-cash amortisation costs and €1bn in research and development costs.

The company had shareholder funds of €34bn on December 29, which included accumulated profits of €6.1bn.