Pretax profits fall to €464m at Johnson & Johnson
Contact lens maker one of largest employers in midwest with revenues up 3% to €1.05bn
Johnson & Johnson Vision Care: Limerick-based company’s directors expect the general level of activity to continue for the foreseeable future “despite ongoing competitive challenges”. Photograph: PA
Pretax profits at the main Irish arm of healthcare giant Johnson & Johnson last year fell 9 per cent to €464.2 million due to increased costs despite a 3 per cent rise in sales at Johnson & Johnson Vision Care (Ireland) to €1.053 billion.
The Limerick-based company is one of the largest employers in the midwest, with staff numbers last year increasing from 952 to 1,008 at the business which manufactures and distributes contact lenses.
The directors state they expect the general level of activity to continue for the foreseeable future “despite ongoing competitive challenges in the marketplace”.
Higher revenues were down to an increase in the volume of inter-company affiliates sales and an increase in the selling price of products during 2018.
The business recorded post-tax profits of €427.6 million after paying corporation tax of €36.5 million.
The profits take account of non-cash depreciation costs of €53.7 million and research and development costs of €9.5 million. The company also received R&D tax credits of €5.4 million.
Staff costs last year increased from €75.57 million to €76.88 million.
Pay to directors last year fell by 23 per cent to €1.89 million, comprising €1.52 million in emoluments, €258,000 in gains on share options exercised and pension payments of €119,000.
The company paid out no dividend last year: it paid a dividend of €320 million in 2017.