The Newry veterinary pharmaceuticals group Norbrook saw it profits squeezed to the lowest level in more than a decade during 2023, as the company faced increased competition from India and China.
Norbrook said revenues increased by 4.4% to £238 million in the year to July 28 2023, but its operating profit plummeted from £20.2m in 2022 to £2.2m in the latest year, while pre-tax profit fell from £21.3m to £3.9m.
The pharma group responded with a cost cutting strategy that included shedding 140 workers through a voluntary redundancy scheme, which was completed over the summer.
The company initially announced that as many as 180 jobs could go.
Norbrook also invested £15m in its operations this year, which it said has already produced results with a 20% improvement in supply performance and a 90% reduction in backorders.
The Newry group also appointed a new chief executive, with Italian native Andrea Iucci replacing Liam Nagle in mid-October.
Speaking on Friday, Mr Iucci said the company had gone through “a significant transformation” in 2023, with a number a new products also launched.
“The company is not standing still and there is an attitude to continue to evolve,” he said.
The new CEO said while farming remains its core business, Norbrook is increasingly looking to the companion animal market.
“We see a big opportunity in the companion animal sector, in fact in the US, it’s more than double the size of the farm animal sector,” said Mr Iucci.
“We need to rebalance. However, this doesn’t mean farm animals are not relevant for us, it’s still our core business.”
The new chief executive said while the pharma group had experienced the same inflationary pressure most companies in the sector, it is also facing an increased pressure from companies based in India and China.
“Most of those companies are already established human pharmaceutical businesses, but they expanded their presence into veterinary.”
But he said Norbrook is well placed due to its geographical locations and its reputation in the sector.
“We are big enough to compete, but also small enough care about customers in a more personalised and customised way.”
Established in 1969 by the late Lord Ballyedmond (Eddie Haughey), Norbrook has operations across the UK and Ireland, Europe, US, Africa, Australia and New Zealand.
Speaking after his first two months in the CEO role, Andrea Iucci said: “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.”
