Irish subsidiary of Boston Scientific sees profits jump

Medical device maker Boston Scientific, which employs more than 4,200 people in Ireland, recorded a 16 per cent rise in pretax profits at its main Irish subsidiary last year despite a slight dip in turnover.

Recently filed accounts show profits rose to $952 million (€887 million) at the Irish unit in 2015 compared to $820 million a year earlier.

Revenues declined by 2 per cent or $72 million over the same period to $3.2 billion while operating profits rose to $992 million from $768 million. Operating profit margin increase was 31 per cent versus 23 per cent in 2014. Gross profit margin, meanwhile, was 51 per cent, versus 48 per cent in the prior year, with the increase attributed to decreased manufacturing costs.

Founded in 1979, Boston Scientific established its first presence in Ireland in 1994 and currently operates in Galway, Cork and Clonmel, Co Tipperary. It is now the country’s 14th-largest exporter, with €4.19 billion in export sales last year.

Cost of sales

The company said cost of sales fell by $161 million in 2015 to $1.5 billion, while admin expenses rose by $37 million to $106 million.

Other operating expenses, including research and development costs, fell by $171 million to $547 million.

The latest accounts show the Irish subsidiary paid a dividend of $282 million to its Bermuda-based parent company last year.

Boston Scientific employed 4,287 people in Ireland last year, up from 2,768 in 2014. Staff-related costs, including wages and salaries, rose to $279 million in 2015, versus $160 million a year earlier.