Genzyme's Irish profits increase to €26.6m

PRETAX profits at the Irish arm of global biotechnology company Genzyme last year increased to €26.6 million.

The group’s Waterford operation reported revenues of €788.8 million for 2009, a figure which accounted for 23.5 per cent of Genzyme’s global turnover at today’s exchange rates. Turnover at the Irish unit was down 11 per cent on the €889.6 million recorded in 2008, according to results filed with the Companies Office.

The returns show its pretax profits rose from €5.9 million in 2008 to €26.5 million last year.

Established in Waterford in 2001, Genzyme Ireland is the primary distribution centre for many of Genzyme’s major treatments and its products and services are focused on rare inherited disorders, kidney disease, orthopaedics, cancer, transplant and immune disease and diagnostic testing.

According to the directors’ report, “turnover for the year was impacted due to restricted supply of bulk materials”.

The plant at Waterford has shown rapid growth with the company’s turnover increasing more than threefold since 2007 when revenues of €219.3 million were generated.

The figures show the company increased its workforce by 21 people to 453 last year. Staff costs rose by 3 per cent to €32.4 million. The accounts show staff received an aggregate share-based payment of €1.33 million, a rise of 15.5 per cent on 2008.

The rise in pretax profits last year is due mainly to a sharp drop in the cost of sales from €831.9 million in 2008 to €710.4 million.

The accounts also show it more than doubled operating profit last year to €32.8 million from €14 million. A breakdown of the company’s turnover showed 50 per cent of sales occurred in the EU and 45.5 per cent in the US.

A related company, Genzyme International Holdings, which also recently filed accounts, paid a divided of €189.4 million to parent company Genzyme Corporation.