Irish-founded medical diagnostics company Trinity Biotech recorded a rise in revenues and profits last year, even as it booked a $17.9 million (€15.1 million) non-cash impairment charge.
Total revenues for 2020 totalled $102 million versus $90.4 million a year earlier while pretax profits rose $14.7 million to $15.5 million from $800,000 in 2019.
A breakdown of turnover shows clinical laboratory revenues rose 17.4 per cent from $79 million to $92.8 million. The increase was mainly due to strong sales of Covid-19 products.
Point-of-care revenues declined 19.1 per cent to $9.2 million last year. The company attributed the drop to lower HIV product-related sales in Africa and the US. The company exited the US market last year, while the Covid crisis led to logistical issues in Africa.
Trinity Biotech develops, manufactures and markets diagnostic systems for the point-of-care and clinical laboratory segments of the diagnostic market. Its products are sold in more than 110 countries, and it employs more than 500 people.
The Nasdaq-listed company began selling an Covid-19 antibody test in the US late last year and recently received approval for its sale in Europe.
Trinity also has a viral transport media product, Flexitrans, which is used for Covid-19 sample collection, and is developing rapid point-of-care Covid-19 test that can detect antibodies to the virus through a finger prick test in just 12 minutes.
Headquartered in Bray, Co Wicklow, the group said operating profits rose from $5.3 million in 2019 to $20.3 million last year due to higher revenues and gross margin.
Covid-19 portfolio
The gross margin for the year was 47.6 per cent compared to 42.2 per cent in 2019. The increase was in part a result of strong sales within its Covid-19 portfolio of products, it said.
Research and development expenses fell slightly to $5.3 million to $5.1 million year-on-year.
Trinity Biotech booked a $17.9 million impairment charge in 2020, having recorded a $24.4 million charge a year earlier.
In the fourth quarter, total revenues totalled $32.8 million, up from $21.3 million in 2019. The rise was primarily a result of a surge in clinical laboratory revenues, which jumped 57.8 per cent to $30.2 million on the back of Covid product sales.
"The company delivered another strong quarter with an operating profit, excluding impairment charges, of $9.1 million, compared to $1.4 million in the fourth quarter of 2019," said chief financial officer John Gillard.
“Gross margin for the quarter increased to 47.8 per cent compared to 43.5 per cent with the company benefiting from a positive sales mix and cost control measures put in place during the year,” he added.
