PRE-TAX profits at an Irish subsidiary of pharmaceutical giant Novartis last year increased by 41% to €11.9m.
Accounts just returned to the Companies Office show that revenues at the Cork-based Novartis Ringaskiddy Ltd (NRL) dropped marginally from €113 million to €112m to the end of December last.
The figures show that the manufacturing company — which employs 428 people — saw its pre-tax profits increase by €3.5m from €8.4m to €11.9m.
The company manufactures the active ingredient for a large number of the top 20 products in the Novartis portfolio.
The directors state: “Future development will depend on the success of the group’s overall strategy, specifically in the development and marketing of new products.”
The accounts show that the company had accumulated profits of €247.7m at the end of December last.
The pharmaceutical giant operates in 140 countries, employing almost 119,000, with its global headquarters at Basle in Switzerland, and is engaged in the manufacture and supply of pharmaceutical products and specialist animal health medicines to the agricultural, health care and industrial sectors.
Novartis was created in 1996 through the merger of Ciba-Geigy and Sandoz and NRL employs 397 in production and 31 in administration and management with staff costs last year increasing from €39m to €40.4m.
The accounts show at NRL last year €249,000 was paid for directors’ remuneration.
The costs include a depreciation charge of €28m last year and this followed a depreciation charge of €27.9m in 2009.
The company paid tax last year of €5.2m, resulting in an after-tax profit of €6.6m.
The accounts show that the company’s cost of sales decreased last year from €104.7m to €99.8m, while the firm’s operating profit increased by 40% from €8.7m to €12.2m.
According to the directors, the increase in operating profits “results from the release of production variances, which originated in 2008”.
The filings show that the company sustained an actuarial profit of €2.8m on its pension scheme last year.
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