Weak sterling against euro concern for Pinewood
ONE of Ireland's largest generic pharmaceutical companies has warned that the persistent weakness of sterling against the euro is a "concern" that will "influence the future direction of the company".
The warning is contained in the latest financial statements of Tipperary-based Pinewood Laboratories, which was snapped up by Indian company Wockhardt for €119m four years ago.
At the time, Wockhardt had high hopes for Pinewood and the latest local accounts say the "corporate objective" is to "sustain a revenue growth of 20pc" by introducing new products and penetrating new geographical markets.
Despite this ambition, the accounts show Pinewood's revenue fell in 2008, dipping more than €2m to about €60m.
In a statement with the accounts, Pinewood's directors hinted at currency movements as a factor behind the decline.
"The deterioration of sterling against the euro is of some concern and will influence the future direction of the company," the directors noted.
The latest accounts also show a dramatic fall-off in profitability in 2008, with operating earnings falling from €10.4m to just under €6m as declining sales were accompanied by higher costs.