Pretax profits at the Co Galway based Chanelle Pharma group last year declined by 19 per cent to €11.05 million, as its new private equity owners gained a €33 million dividend.
On April 3rd last year, vet-turned businessman, Michael Burke sold Chanelle Pharmaceuticals he founded more than 40 years ago in a deal understood to be about €300 million to British private equity group, Exponent.
Chanelle Pharma is Ireland’s largest manufacturer of generic pharmaceuticals for human and animal health.
Headquartered in Loughrea, the group employs more than 700 people across Ireland, the UK, Portugal, and Jordan.
With four manufacturing and five R&D facilities, Chanelle Pharma exports to over 80 countries worldwide.
In new consolidated accounts for the group, Chanelle Holdco 3 and subsidiaries' pretax profits declined by €2.59 million to €11.05 million for the 12 months to the end of April last year as revenues increased by 11 per cent to €190.5 million.
The group last year paid out of a dividend of €33 million, up from €6.8 million a year earlier.
The directors for the manufacturing arm state that “trading since the start of the new financial year has been encouraging”.
They add that “the outlook remains positive with strong market demand for our products and delivery pipeline”.
They further state that “we believe in the capability of our people and our ability to execute our strategy and therefore remain confident in our future growth prospects”.
On the group’s future developments, the directors state that “the company will continue to pursue new opportunities to grow its products and customer base, through a combination of organic growth, product delivery and expansion of our manufacturing capabilities in our facilities”.
They state: “Numerous marketing authorisations for product approvals have been achieved throughout the year as well as a number of licence and supply agreements. Although none are material in their own right, they all strengthen the existing product portfolio.”
The profit takes account of non-cash depreciation charges of €4.28 million and Research & Development costs of €4.56 million, offset by an R&D tax credit of €730,000.
Numbers employed increased from 660 to 681 as staff costs increased from €33.3 million to €40 million.
Shareholder funds at the end of April 30th totalled €30.4 million that included accumulated profits of €28.1 million.
Directors’ pay last year decreased from €281,310 to €267,319.
A breakdown of the group’s revenues show that it generated revenues of €90.69 million in the Republic, €85.16 million in Europe and €14.64 million in ‘rest of world’.
