A challenging cost base has been blamed for a slide in profits at animal health company Norbrook.
The Newry firm reported pretax profits of £3.9 million in its full year accounts for 2023, a drop from £21.3 million in 2022 and despite a £8 million hike in turnover to £238 million.
It said a high cost base was to blame for the slide “which the company has acted upon” by implementing a robust cost reduction strategy in the latter half of the year. Norbrook also pointed to a challenging global economy and heightened competition in the animal health sector as a reason why sales growth wasn’t as anticipated.
Hints of the headwinds the company was facing emerged in spring 2023 when it announced it would be reducing headcount by 180 people. Prior to that, the company, which was founded by Lord Ballyedmund in 1969 employs nearly 2,000 people across the world.
Looking ahead, it said its reinvestment of profits over the last few years – which have amounted to 6% of revenue – are starting to bear fruit with an improvement in both supply performance and reduction in back orders. It also said it has launched six new products this year aimed at the pet market, has invested in its US base and completed a £7 million capital expenditure project.
Andrea Iucci, Chief Executive Officer of the company who took over from Liam Nagle, said 2023 was a “transformational” year.
“We had a strong number of new products launched continuing our focus on being the first generic to market with a high degree of differentiation. We continue to work with our Customers with whom we have strong, long-term, close relationships.
“Our Team has tirelessly supported the business, delivering significant process improvements and recognised dedication to Quality. We supported our people through the difficult voluntary redundancy programme earlier this year, and are very appreciative of our employees’ continued support.”
