DUBLIN: Pre-tax profits at the main Irish arm of Boston Scientific last year increased by 16% to $952m (€887m). The leading US medical device manufacturer is one of the largest companies in Ireland employing more than 4,000 people at sites in Galway, Cork, and Clonmel.
Newly filed accounts show that, despite the solid profit rise, the Irish division’s profits fell 2% to $3.2bn. The firm’s corporation tax bill last year increased almost three fold to $15.7m. According to the company’s directors, the drop in annual revenue came about as a result of “increased pricing pressures on the company’s products during the year”.
That said, management said in the latest accounts that they are “satisfied” with the performance of the company.
The Irish division paid a dividend of $282m to its parent company last year, the accounts show. The company had accumulated profits of $1.34bn as of the end of last year, with shareholder funds totalling $1.54bn. It spent $479m on research and development last year.
A note attached to the latest accounts reveals an agreement between Boston Scientific and the IDA — running from 2009 and 2015 — detailing the company has a contingent liability to repay grants totalling $18.9m if certain circumstances set out in those agreements occur within five years of the date of the agreement. The number of people employed by Boston Scientific in Ireland increased last year from 2,768 to 4,287. Payroll costs increased from $159m to $279m as a result.
The company last year recorded a 29% increase in operating profits to $992.2m. The profits for 2015 take account of combined non-cash costs of amortisation and depreciation of $150m.
The firm’s cost of sales last year reduced by $161m to $1.55bn. Its combined administrative and other expenses compared to 2014. The group’s gross margin was 51% last year, compared to 48% in 2014, and the increase “was primarily as a result of decreased manufacturing costs”.
The company’s operating profit margin was 31% in 2015 compared to 23% in 2014. Boston Scientific has had a presence in Ireland since 1994 and has grown to be the largest medical device employer in the country.
