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Profits fall 11% at drug company Servier

Profits fall 11% at drug company Servier

DUBLIN: Pre-tax profits at the Irish unit of French pharmaceutical company Servier fell 11% to €54.97m even as revenues jumped. New accounts filed by Servier Ireland Industries Ltd show revenues increased 7% to €694.8m in the 12 months to the end of September last year. Staff numbers at the firm’s Arklow plant fell from 412 to 387. This included 311 people who work in production and 51 people in administrative posts. The filings show that staff costs fell from €26.2m to €25.3m. Directors were paid €46,650, the same amount as in 2015. Servier makes pharmaceuticals, primarily for export. It paid a dividend of €50m to its parent in 2016 In 2016, it had also paid out €50m. The directors state: “During the year, sales increased from the previous year. This increase was driven by increased production overall on new and existing products.”

On the outlook for the current financial year, they said: “The group expects to retain its sales levels and further improve its financial performance in the coming year.” Its tax bill of €6.93m was based on net profits of €48m. Accumulated profits fell from €226m to €224m. Servier’s total shareholder funds stood at €243m, including €93.5m in cash. The profits take account of non-cash depreciation costs of €8.13m. Cost of sales increased from over €488m to €548.5m. Operating profits fell from €61.7m to €54.83m. The firm also benefited from a €2.7m gain on the disposal of tangible fixed assets.