Profits at Limerick-based medical firm soar to €540m
PRE-TAX profits at the Limerick based subsidiary of Covid-19 vaccine producer, Johnson & Johnson almost doubled to €540.97m in 2021.
New accounts filed for the Plassey-based Johnson & Johnson Vision Care Ireland Unlimited Co show the company recorded an 83% increase in profits after revenues rose by 9.5% from €951.8m to €1.04bn in the 12 months to the end of January 2, 2022.
The directors state the increase in revenues “is due to the increase in the volume of lens produced due to increased demand post Covid restrictions”.
The chief factor behind the surge in profits was a reversal of a €130m impairment in investments that was recorded in the prior year.
The number of people employed at the unit - which specialises in the production of eye-care products - increased from 1,960 to 2,128.
The company, which is based at the National Technology Park, is one of the biggest employers in the Mid-West and the company’s staff costs reduced, in 2021, from €100.9m to €99.8m.
Directors’ pay increased marginally from €1.96m to €2.12m - made up of emoluments of €1.88m, €198,000 in pension contributions and €46,000 in gains on share options exercised.
The firm’s profit takes account of non-cash depreciation costs of €54.77m, research and development (R&D) costs of €11.1m and finance expenses of €39.5 million.
The company recorded post-tax profits of €508.7m after paying corporation tax of €32.2m.
At the end of January 2, 2022, the firm had shareholder funds of €2.42bn that included accumulated profits of €2.26bn.
Accounts for a separate J&J Irish unit - the Cork-based DePuy Ireland UC show that it recorded a pre-tax loss of €166.72m in the 12 months to the end of January 2, 2022.
The loss was recorded despite revenues rising by 41% from €896m to €1.26bn.
The firm recorded the loss after recording a pre-tax profit of €34.6m in the prior year that occurred due to a €696m profit on disposal of investments.
The company is engaged in the production and supply of orthopaedic medical devices, including artificial replacement hips and knee joints and numbers employed at the Ringaskiddy based firm increased from 952 to 1,031 as staff costs increased from €83 million to €102 million.
Directors’ pay declined from €2.18m to €2.06m made up of emoluments of €1.85m, €138,000 in pension contributions and €72,000 with gain of exercised share options.
In August 2010, DePuy Ireland Unlimited Company announced a worldwide voluntary recall of certain products used in hip replacement surgery.
The provision stated in the financial statements decreased during the financial year ended, January 2, 2022 in relation to certain hip products in the amount of €49m.
The total provision for product recall and associated costs in January 2022 was €276m.