Profits at the Irish sales and marketing subsidiary of British chemist, Boots plc, fell 25 per cent to almost €3 million last year, recent filings with the Companies Registration Office (CRO) show.
Boots Healthcare Ltd, which is based in the Dublin suburb of Clonskeagh, had sales of €19.4 million in the year to March 31st 2004, according to the CRO returns.
The figure was a 20 per cent improvement on the previous year's sales of €16.2 million. However, the cost of sales increased at close to twice that rate.
The accounts show that these costs rose to €14.7 million in its 2004 financial year from €10.8 million in 2003.
Operating expenses also increased slightly, rising to €1.83 million from €1.7 million. As a result, operating profits dipped to €2.8 million in 2004 from €3.76 million.
Investment income boosted operating earnings by just over €100,000. However, this failed to keep pace with 2003, when the company made €236,000 under this heading.
As a result, it ended the year to March 31st 2004 with €2.9 million in profit before tax, compared with €3.9 million during the comparable period in 2003.
Boots Healthcare operates in all 32 counties. The British company's figures show that sales in the Republic were €16.8 million while Northern Ireland generated a turnover of €2.6 million.
Revenues from the Republic were over €3 million ahead of 2003, while those in Northern Ireland remained stable. In 2004 the company had 21 people working for it, 16 in sales and marketing and five in administration.
That was unchanged on the previous year. However, staff costs were almost €200,000 higher than in 2003 at €1.25 million. Directors' pay rose €16,000 to €157,000.
The company did not pay any dividend to its shareholder, Boots plc, in 2004. However, the previous year it handed over €6 million.
Boots Healthcare Ltd is a division of Boots Healthcare International, which develops, sells and markets a number of non-prescription medicines and treatments. Its brands include Nurofen painkillers, Strepsils throat lozenges and Clearasil skin treatment.
The Irish company is responsible for the sale and distribution of its products in this country.
Boots Healthcare International had worldwide sales approaching €750 million in the year to March 31st 2004.
The ultimate parent, Boots plc, is not yet due to publish overall results for the group's last financial year, which ended on March 31st.
London-listed Boots is best known for the pharmacy chain it operates as Boots Chemists both here and in Britain. The company has 84 stores in Ireland, and around 1,400 in the UK.
