The Irish manufacturing operation of Japan’s largest pharma company continue to haemorrhage in 2014.
Accounts for Takeda Ireland Ltd show that the company reported operating losses of €46.4 million as revenues fell by a third to €76.6 million.
The cost of sales, at €79.1 million now exceeds company revenue. And while the loss is down dramatically on the 2013 figure of €190 million, that latter figure included a €136.6 million exceptional for impairments following the corporate restructuring of Takeda’s Irish operations.
The loss also comes despite a €26 million boost from the turnaround of foreign exchange issues. While the company allowed for a €13.3 million loss on foreign exchange in 2013, it reported a €22.6 million gain from this area last year.
Takeda first came to Ireland in 1997 with the acquisition of a small start-up Grelan in Bray in what was the Japanese company's first investment in Europe. It produces finished pharmaceutical product.
It subsequently built a new active pharmaceuticals ingredient plant at Grange Castle, which was its first bulk pharma plant outside Japan when it opened in 2009. Takeda now employs 366 people at its two manufacturing plants.
Compensation payment
The 2014 accounts reflect a €2.1 million compensation payment arising from legal action against a contractor over delays in the construction of its Grange Castle plant.
Directors note in their report that company sales are to related parties.
Japan remains the biggest single source of income for the Irish group but, at just under €30 million, this is down sharply on the €42 million recorded in 2013.
The figure for the UK, formerly Takeda Ireland’s second largest market is worse, with sales slumping to €9.1 million last year from €35.8 million the previous year.
Sales to North America nearly doubled to €9.4 million in 2014 but sales to EU states other that Britain and Ireland now account for €18.4 million.
While this figure is also down, from €21.7 million a year earlier, it is now the second most important geographic segment for the group.
Making a profit
Separate accounts for Takeda Products Ireland Ltd, formerly Nycomed Ireland, show that Takeda made a profit of €363,000 last year, up 19 per cent on the previous year.
This was despite a 17 per cent slide in revenues to €7.67 million at the group which is involved in selling company product in Ireland.
Takeda Products Ireland cites the risk of the imposition of further price reductions by the HSE as the principal risk to its business.
While costs fell overall, staff costs jumped 43 per cent to €2.9 million despite a slight fall in staff numbers
