Servier Irish operation’s profits double

Pre-tax profits at the main Irish unit of French pharma giant, Servier, last year more than doubled to €48.4 million as revenues topped €550m.

Accounts just filed by Servier (Ireland) Industries Ltd to the Companies Office, show the Co Wicklow -based firm enjoyed a 106% increase in profits to €48.4m.

The firm recorded the sharp increase in profits as revenues increased by 25% from €443.4m to €553.5m in the 12 months to the end of Sep 30, 2012.

Numbers employed by the firm’s Arklow plant — which was subject to a fresh €47m investment three years ago — last year increased from 392 to 409.

The principal activity of the group continues to be the manufacture of pharmaceutical products, primarily for the export market.

The directors state: “During the year, sales increased significantly from the previous year.

“This increase was driven by increased production, as a result of additional production facilities available to the group and also as a result of increased shipments to Bulgaria and Romania.”

The figures show that the directors approved a dividend pay-out last year of €20m, following a dividend pay-out of €20m in 2011.

The directors’ report states that “during the year, a re-analysis of costs associated with the production process was performed, resulting in additional costs being included within the valuation of inventory on the balance sheet. As a result, administrative expenses for the year decreased in comparison to prior year”.

On the firm’s future developments, the directors state: “The group expects to increase its sales levels and further improve its financial performance in the coming year with sales of combinations and new products incorporated in the company’s portfolio.”

The firm’s tax bill was €5.9m and the figures show that after the post-tax profits of €42.5m and dividend pay-out, the firm’s accumulated profits increased marginally to €208.4m.

Its total shareholder funds last year stood at €226.5m, including €33m in cash.

Arising from the increase in employees, staff costs at the firm last year increased from €23.1m to €24.9m.

Emoluments to directors increased marginally to €280,300. The figures show that the profits take account of non-cash depreciation costs of €9.1m.


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