Abbott Laboratories' Irish profit up 30% to €6.2m

Profits at the Irish sales and marketing division of global healthcare giant Abbott Laboratories grew almost 30 per cent to €6.2 million in the company's last financial year, its accounts show.

According to figures filed with the Companies' Registration Office, turnover at Abbott Laboratories Ireland grew by just over 10 per cent in the year to the end of November 2003, to €54.76 million, from €49.9 million the previous year.

Operating profits grew 27 per cent to €6.2 million in 2003, from €4.84 million in 2002. Foreign exchange losses of €17,133 virtually wiped out a net interest gain of €17,400.

The accounts show Abbott Ireland repaid €79,470 in interest to an unnamed group company in 2002. A foreign-exchange gain of €21,000 and interest earnings of €5,400 partly offset this.

Pre-tax profits grew 29 per cent to €6.2 million at the end of November 2003, from just under €4.8 million the previous year.

The reduction in the corporate-tax rate from 16 per cent to 12.5 per cent added slightly to retained profits, which came in 33 per cent ahead of 2002 at €5.3 million.

This added 50 per cent to the company's profit-and-loss account, which stood at €16.4 million at the year's end, up from €11.1 million 12 months earlier.

The accounts show that in the two years from the beginning of the company's 2002 financial year to the beginning of this year, its profit-and-loss account more than doubled from €7.1 million to €16.4 million.

The growth in the profit-and-loss account in 2003 left shareholders' funds at €16.4 million.

The company's balance sheet was strong, with total assets of €20 million standing at 2.5 times debt. Debtors and prepayments of €13.5 million accounted for the bulk of its assets.

The accounts also show that Abbott Laboratories pays 10 per cent tax on the sale of goods manufactured in this country by other companies in the group. The value of this relief dropped to €7,340 in 2003 from €15,000 the previous year.

Directors' fees and other payments were €288,899, and staff costs were €5.4 million.

Abbott Laboratories Ireland is based in the Citywest industrial estate in Dublin and employs around 100 people. It is responsible for the sale and distribution of all Abbott products in Ireland.

It is one of five facilities operated in this country by the US-based parent, Abbott Laboratories. The company has plants in Sligo; Cootehill, Co Cavan; and Co Galway. It produces a range of products here, including pharmaceuticals, babyfood, and diagnostics.

A fourth manufacturing plant based in Longford is due to open early next year. Abbott's Irish production activities are managed from its headquarters in Sligo. It employs a total of 1,700 people in this country.

In 2003, Abbott Laboratories had worldwide sales of €16.3 billion and profits before tax of €3 billion.