Pretax profits at Irish subsidiary of Johnson & Johnson almost double

Pretax profits at an Irish subsidiary of Covid-19 vaccine producer Johnson & Johnson almost doubled to €540.97 million in 2021.

Accounts filed for the Limerick-based Johnson & Johnson Vision Care Ireland Unlimited Co show that the company recorded the 83 per cent increase in profits after revenues rose 9.5 per cent from €951.8 million to €1.04 billion in the 12 months to the end of January 2nd, 2022.

In a note with the accounts, the directors said the increase in revenues was “due to the increase in the volume of [contact lenses] produced due to increased demand post Covid restrictions”.

The chief factor behind the surge in profits was a reversal of a €130 million impairment in investments that was recorded the previous year.

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Numbers employed at the Limerick-based unit – which specialises in the production of eye-care products – increased from 1,960 to 2,128.

The company, based at the National Technology Park at Plassey in Limerick, is one of the biggest employers in the region and the company’s staff costs reduced from €100.9 million to €99.8 million.

Directors’ pay increased marginally from €1.96 million to €2.12 million made up of emoluments of €1.88 million, €198,000 in pension contributions and €46,000 in gains on share options exercised.

[ Johnson & Johnson sets its sights on improved eye care with €100m Limerick investment ]

The firm’s profit takes account of non-cash depreciation costs of €54.77 million, research and development (R&D) costs of €11.1 million and finance expenses of €39.5 million. It recorded post-tax profits of €508.7 million after paying corporation tax of €32.2 million.

At the end of January 2nd, 2022, the firm had shareholder funds of €2.42 billion that included accumulated profits of €2.26 billion.

Accounts for a separate J&J Irish unit, the Cork-based DePuy Ireland UC, show that it recorded a pretax loss of €166.72 million in the 12 months to the end of January 2nd, 2022.

The loss was recorded despite revenues rising by 41 per cent from €896 million to €1.26 billion.

The company is engaged in the production and supply of orthopaedic medical devices, including artificial replacement hips and knee joints and numbers employed at the Ringaskiddy based firm increased from 952 to 1,031 as staff costs increased from €83 million to €102 million.