Norbrook Laboratories, a major Northern Ireland-headquartered veterinary pharmaceuticals business, has blamed "manufacturing and supply chain issues" for an 11 per cent fall in its revenues in the year to the end of July 2020.
The company, which was founded by the late businessman Edward Haughey, posted revenues for the 12 months of £167.7 million (€184.7 million), down from £188.4 million the previous year.
In a note attached to its recently filed accounts, the directors of the business said they had a “difficult” first half of the year, which would cover the period from August 2019 into the beginning of 2020. They said the supply chain and manufacturing issue had “adversely impacted” Norbrook’s ability to supply the market.
The issue is believed to relate to a product recall last year of a veterinary drug manufactured in Newry by Norbrook. The company said the issue has been resolved.
Despite the manufacturing issues, Norbrook said there is “robustness” in the demand for its products, and it does not expect Covid-19 to have a significant effect on the company. It shrugged off the revenue dip to record a profit of £2.9 million, after posting losses of £5.9 million the previous year.
Accumulated profits
Norbrook Laboratories has accumulated profits of £92 million on its balance sheet, and spent £10.6 million on research and development. Subsequent to its year end in July, it said, it eliminated a £25 million guarantee that had been in place in favour of Danske Bank.
The company, which has operations in the Republic, the North and Britain, said it is planning for a no-deal Brexit and the imposition of World Trade Organisation tariffs on trading.
It was founded in 1969 by Mr Haughey, who was styled in the UK as Lord Ballyedmond. He died in a helicopter crash in 2014. The company is now controlled by a family trust, while Mr Haughey's widow controls a stake of 21 per cent.
