Pretax profits at Co Galway based Chanelle Pharma group last year increased by 51.5 per cent to €16.75 million.
Chanelle Pharma is Ireland’s largest manufacturer of generic pharmaceuticals for human and animal health and accounts show that pretax profits rose from €11.05 million to €16.75 million as revenues increased by 17 per cent from €190 million to €223.19m in the 14-month period to the end of April last.
In February 2024, vet-turned businessman, Michael Burke, sold Chanelle Pharma which he founded more than 40 years ago, to British private equity group, Exponent.
From its Loughrea base, the group employs more than 700 people across Ireland, Britain, Portugal and Jordan. It exports to more than 90 countries.
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Accounts filed by Herriott Pharma UK Topco with Companies House in Britain show that the company acquired Chanelle Holdco 3 Ltd and subsidiaries for €183.9 million on April 3rd 2024.
Herriott Pharma UK Topco was incorporated in February 2024 and that coincided with Exponent announcing the purchase of Chanelle Pharma.
The accounts show that the outlay of €183.9 million comprised €165.68 million in cash relating to the business combination and an additional €18.23 million concerning costs directly attributable to the business combination.
The accounts for Herriott PharmaUK Topco Ltd capture the revenue and profit performance of Chanelle Holdco 3 Ltd and subsidiaries.
A breakdown of the €223.19 million revenues in the 14 months to the end of April 30th, 2025, shows that €114.46 million was generated in the Republic, €94.7 million in Europe and €14 million in “rest of world”.
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On the outlook for the business, in a note with the accounts, the directors said that “trading since the start of the new financial year has been encouraging”.
They note that the outlook “remains positive with strong market demand for our products and delivery pipeline. We believe in the capability of our people and our ability to execute our strategy and therefore remain confident in our future growth prospects.”
Numbers employed totalled 685, made up of 416 in operations and 269 in administration; staff costs were €44 million. Pay to directors amounted to €618,263, including pension contributions of €16,068.
The highest-paid director received €461,831 during the year.
Under the heading of research and development, the note stated that the group has a structured development programme with the aim of identifying and bringing to market new pharmaceutical products.
Investment in development is seen as key to strengthening further the group’s competitive position, the directors said.
