Pre-tax profits at the Co Galway-based Chanelle Pharma group decreased by 42 per cent to €13.7 million last year due to higher costs.
Earlier this month, 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.
Now, in new consolidated accounts for Chanelle Pharma Ltd, they show that the group recorded the €10 million decrease in pre-tax profits to €13.7 million as revenues increased by five per cent from €162.77 million to €171.12 million in the 12 months to the end of April 30th last.
Profits were hit after the cost of sales increased by 15 per cent rising from €108.13 million to €124.66 million.
The group last year paid out dividends of €5.75 million and this followed a dividend payout of €10 million in the prior year.
The accounts were signed off on December 8th ahead of the Exponent deal and sounding an upbeat note on the business's prospects, the directors state: "Trading since the start of the new financial year has been encouraging. The indications at this stage are positive with strong market demand for our products and delivery pipeline.”
They state: "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 €3.76 million and Research & Development costs of €3.3 million.
Numbers employed by the Michael Burke founded group increased from 595 to 660 as staff costs increased from €28.9 million to €33.39 million.
The main activity of Chanelle Pharma is the manufacture and sale of veterinary and medical pharma products worldwide together with associated research and development.
Shareholder funds at the end of April 30th totalled €55 million that included accumulated profits of €52.8 million.
The group's post-tax profit last year was €11.07 million after incurring a corporation tax charge of €2.6 million.
Directors’ pay last year increased sharply from €468,4082 to €764,784. Key management personnel were paid €1.65 million.
A breakdown of the group's revenues show that it generated revenues of €83.07 million in the Republic, €76.4 million in Europe and €11.6 million in ‘rest of world’.
