Northern Ireland veterinary pharmaceuticals firm posts increased revenue of £238million

Northern Ireland veterinary pharmaceuticals group, Norbrook has revealed revenues have increased by 4.4% to £238million in the year to July 28 2023.

However the Newry firm also revealed its operating profits plummeted to the lowest level in more than a decade during 2023 from £20.2m in 2022 to £2.2m in the latest year. Pre-tax profit also fell from £21.3m to £3.9m as the company faced increased competition.

The pharma group responded with a cost cutting strategy that included losing workers through a voluntary redundancy scheme, which was completed over the summer.

In 2023, Norbrook invested £15m to secure the future of the business, which has already produced results with a 20% improvement in supply performance and a 90% reduction in backorder. The Company also launched six new products during the year in the US, New Zealand and Australia, with further new product launches planned for the coming year.

Despite this, the company faced hurdles in achieving the anticipated sales growth for the year, mainly due to the challenging global economic environment and heightened competition in the animal health sector. As a result, they implemented a cost reduction strategy in the latter half of the year.

In response to the figures, new chief executive officer Andrea Lucci, said: “2023 was a transformational year for the company. 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.

“I feel Norbrook has a very unique offering, with a diverse portfolio and long-term view for success. At the very core of the business are our people, people who really care about this Company and who have a purpose not just a job.

"Looking ahead, I am optimistic that we have laid an excellent foundation that will set us up for future success. Key factors contributing to this optimism include our resilient customer relationships, continuous investment in the business, strengthening of our manufacturing capability and the delivery of our differentiated product pipeline.”