Alltech’s Irish subsidiary reported a 70% decline in operating profits for its 2016 financial year to €3.8m, as profit margins in the business fell from 15.5% in 2015 to 5.2% in 2016. Alltech said the fall in profits in its Irish business, which serves as the parent company of its European animal health division, was a result of reduced sales to its subsidiary businesses across Europe, most notably Russia.

Pre-tax profits at Alltech’s Irish business fell by 80% in the year to less than €2.5m. Alltech Ireland reported sales of €73.7m for its 2016 financial year, which was down 12% year on year.

Sales to EU countries account for almost 60% of the business, while sales to its subsidiaries outside the EU, such as Russia, Turkey and Australia, make up just over 40% of sales.

The business, which employs close to 130 people in Ireland, had net assets of more than €120m at year end. Alltech said it invested close to €4.3m in research and development in 2016, which is almost 6% of the business’s turnover.