Servier restructure cuts pre-tax profits

Restructuring charges of €1.3m at the main Irish unit of French pharma giant, Servier last year contributed to pre-tax profits declining by 4% to €63.55m.

According to accounts just filed by Servier (Ireland) Industries Ltd to the Companies Office, the Co Wicklow-based firm which employs almost 440 people sustained the drop in profits in spite of revenues increasing by 2.5% from €607.89m to €622.87m.

The firm in the year to the end of September 30 last paid a dividend of €60m to its parent and this followed a dividend payout of €40m in 2013.

In 2012, Servier’s Arklow site received a boost following the European Medicines Agency giving approval for Servier’s drug, Procoralan to treat patients suffering from chronic heart failure.

The drug — produced in Arklow— had already been used to treat patients with angina.

The directors state that during the year, a subsidiary, accounting for 2% of the group’s total sales “experienced a reduction in turnover and business due to the publication of the interchangeable list of the Perindopril family of products... As a result, a redundancy programme was implemented.”

The firm’s tax bill was €7.9m and the figures show that after the post-tax profits of €55.6m and dividend pay-out, the firm’s accumulated profits reduced from €226.3m to €222m.

The firm’s total shareholder funds last year stood at €240m that included €28.56m in cash.

The filings show that arising from the increase in employees, staff costs at the firm last year went up by 3% from €26m to €26.78m.