Despite the broader group undertaking a redundancy plan to decrease expenditure, staffing numbers at Norbrook’s Republic division remained constant through to July last year. The veterinary medicine manufacturer, founded by the deceased businessman Edward Haughey, is a significant source of jobs in the area of Newry. Yet, the primary Northern Ireland entity reported a nearly 80% drop in pre-tax profits to £3.8 million (€4.4 million) in the year ending last July.
In the given economic circumstances, Norbrook who employed roughly 2000 people then, announced last May its intention to cut 180 jobs as it had begun exploring methods to limit compulsory redundancies. Recent accounts filed in Dublin by Norbrook Laboratories (Ireland) Ltd, which is responsible for marketing and distributing the pharmaceutical firm’s products in the Republic from its Monaghan base, reveal a slight dip in last year’s income from €16.5 million in 2022 to €15.6 million. Pre-tax earnings also saw a minor reduction from just over €735,500 to around €707,500 the previous year.
Still, staff numbers had almost no variance last year with 18 compared to 19 the prior year, in 2022. Alongside the accounts, a directors’ report stated that they forecast a continued “highly competitive” exterior trading environment in the coming year, due to persistent market share retention by national and international competition. Nevertheless, the board expressed confidence in the company’s future performance.
In the group accounts filed toward the end of the previous year, directors acknowledged the financial performance as “underwhelming”. Despite growth in sales, they concluded it was lower than expected and hence, had to make the tough call of reducing their workforce. Sales saw a mere rise of 0.4% over the 12-month period, up from 0.2% in the year ending June 2022, which was also “below expected levels” according to the directors. At the same time, sales costs surged almost by 9% leading to Norbrook’s gross margin being squeezed from well above 40% to 35% in a year.
In 1969, Mr Haughey, Lord Ballyedmond, initiated the establishment of the group. Unfortunately, he encountered a fatal helicopter accident in 2014. At present, a family trust holds the reins of the company. Meanwhile, Mr Haughey’s surviving spouse retains the ownership of twenty-one per cent of the company’s shares.