Tag: Neimeth

Neimeth International Pharmaceuticals Plc grew its sales by 62 per cent to N5.01 billion in the third quarter, underlining the expansion in the company’s business activities.

Key extracts of the interim report and accounts of Neimeth for the nine-month period ended September 30, 2025 released at Nigerian Exchange (NGX) showed that total revenue grew to N5.01 billion in third quarter 2025 as against N3.09 billion in the corresponding period of 2024. Increased sales revenue also led to a 71 per cent increase in gross profit, which stood N2.49 billion. Operating profit rose by 120 per cent to N1.66 billion.

While growing the top-line, the company was able to manage costs. Marketing and distribution expenses grew by six per cent from N412.7 million to N437.4 million. Administrative costs grew by 67 per cent on the back of inflationary pressure and foreign exchange (forex) fluctuation.

However, a 198 per cent rise in finance costs from N442.7 million to N1.3 billon negatively affected the bottom line. Net profit rose marginally by nine per cent to N339.8 million from N310.4 million.

The company’s balance sheet indicated continued growth. Total assets grew to N13.35 billion, an increase from N11.99 billion at the end of December 2024. Total liabilities also increased to N11.35 billion from N10.34 billion. Consequently, net assets improved by 21 per cent to N1.99 billion, up from N1.65 billion at the start of the period, reflecting the profit generated during the year.

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Further analysis showed that the company’s cash flow activities reflected its operational expansion and financing structure. For the nine-month period, Neimeth generated strong positive cash flow from its core operations, amounting to N1.5 billion. A significant cash outflow of N1.42 billion was recorded for financing activities, predominantly for the payment of finance costs.

The company’s equity base was strengthened by its profitability during the period. Starting with an opening equity of N1.65 billion, the addition of the N339.8 million profit for the period brought the total equity to N1.99 billion by September 2025. Earnings per share (EPS) stood at 7.95 kobo, up from 7.27 kobo in comparable period 0f 2024.

Neimeth International Pharmaceuticals Plc is investing in the expansion and operational efficiency of its factory as part of ongoing drive to enhance the company’s competitiveness in the African pharmaceutical manufacturing industry.

Chairman, Neimeth International Pharmaceuticals Plc, Mr Christopher Oshiafi, at the annual general meeting yesterday in Lagos, updated shareholders on ongoing strategic initiatives aimed at expanding the company’s leading status within the domestic and African markets.

He explained that the board had during the year under review made a decisive move, with the full backing of the Securities and Exchange Commission (SEC), to reallocate N1.5 billion that was originally intended for the construction of a new plant in Anambra State into expansion of its existing factory.

According to him, the funding has now been specifically directed towards enhancing the expansion and operational efficiency of existing plant in Lagos State.

He said the strategic redirection was partly in response to the depreciation of the naira and inflationary pressures, which had directly impacted working capital and budgeting for the new project, as well as to give immediate impetus to the company’s expansionary drive.

“This ambition directly supports our goal to emerge as the leading healthcare provider out of Africa. Furthermore, this facility will strategically position Neimeth to capitalise on the opportunities presented by the African Continental Free Trade Agreement (AfCFTA), solidifying our status as a significant player in pharmaceutical production and distribution across the continent.

 We will provide regular updates as this project advances,” Oshiafi said.

He reassured shareholders of the company’s potential for growth and enhanced value noting that with a strong presence in the pharmaceutical industry, Neimeth is well-positioned to capitalise on emerging opportunities and drive shareholder value.

Managing Director, Neimeth International Pharmaceuticals Plc, Pharm. Valentine Okelu said  the company has experienced a significant recovery in its operations,  regaining a leading position as one of the fastest-growing pharmaceutical companies on Nigerian Exchanges (NGX) in 2024.

He said the 2024 full year report showed a strong growth outlook driven by fundamental improvements in the company’s business.

“Our emphasis on cost efficiency and effective route-to-market strategies resulted in all-round operational enhancements,” Okelu said.

Key extracts of the audited report and accounts of Neimeth for the year ended December 31, 2024 showed that turnover rose by 103 per to N4. 485 billion as against N2.209 billion  in 2023. Gross profit jumped by 167 per cent from N734.07 million to N1.957 billion. Operating profit changed from a loss of N1.021 billion in 2023 to a profit of  N18.886  million in 2024,  a 102 per cent growth.

During the period, cost management measures adopted by management yielded good results. For  instance, despite  the 103 per cent increase in sales revenue, marketing and distribution expenses fell by 14 per cent from N792.382 million to N628.176 million. Administrative expenses fell by 28 per centfrom N868.115 million to N628.176. However finance cost rose by 32 per cent from N667.948 million to N873.320 million.

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With 41 per cent increase in foreign exchange losses from N1.459 billion to N2.047 billion, the company however ended with pre and post tax losses of N854.434 million  and  N885.333 million respectively. It had recorded pre and post tax losses of N1.689 billion and N1.797 billion in 2023.

Shareholders, who spoke at the meeting expressed confidence in the board and management noting that the company now stands in good stead to make profits and resume dividend payment.

Following its improved operational performance, Neimeth’s  share price had seen a major rebound in 2024 as investors reassessed the company on the basis of emerging results. Underlying performance ratios, which measure the depth of structural improvement and intrinsic value creation, were positive in 2024, underlining the fact that the actual figures were driven by substantial changes in the fundamentals of the company.

Neimeth International Pharmaceuticals Plc grew sales by 86 per cent in the first quarter as ongoing strategic initiatives continue to improve market share and profit margin.

Key extracts of the interim report and accounts of Neimeth for the first quarter ended March 31, 2025 released at the Nigerian Exchange (NGX) showed that turnover rose by 86 per cent from N648.26 million in first quarter 2024 to N1.21 billion in first quarter 2025. Gross profit increased from N505.11 million to N639.72 million, a 27 per cent increase.

Operating profit doubled by 114 per cent from N210.14 million in first quarter 2024 to N449.87 million in first quarter 2025. Profit after tax rose from N77.65 million to N115.76 million, representing a 49 per cent increase. Earnings per share thus improved from 2.0 kobo to 3.0 kobo.

The balance sheet of the company also improved with total assets rising from N11.99 billion by December 31, 2024 to N12.41 billion by March 2025. Shareholders’ funds rose from N1.65 billion in December 2024 to N1.77 billion by March 2025.

Managing Director, Neimeth International Pharmaceuticals Plc, Pharm Valentine Okelu, said the first quarter results showed the continuing growth in the company’s business amidst ongoing strategic initiatives aimed at boosting sales and cutting costs.

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He said the company remains focused on implementing its five-year strategic plan, which is aimed to consolidate the company’s operations as a dominant brand out of Africa.

“We remain focused on our 2025-2029 strategic growth plan. The first quarter 2025 results lay out our path towards substantial growth in revenue and profit. We will pursue these strategic goals with vigour, building strong partnerships and leveraging market opportunities to drive sustainable expansion,” Okelu said.

He assured that the company is making concerted efforts to create value for its shareholders, stakeholders, and the broader healthcare industry.

Earlier in the year, Okelu had unfolded the company’s five-year growth plan aimed at boosting sales and reducing cost.

“Our emphasis on cost efficiency and effective route-to-market strategies has resulted in all-round operational enhancements,” Okelu, who took over the management of the company in August 2023 said.

He said the company is aggressively restructuring its foreign currency-denominated loans, converting them into naira to shield it from further forex volatility.

“Additionally, we are negotiating extended payment terms on outstanding facilities to create financial headroom for a swift return to positive cash flow and profitability,” Okelu said.

He explained that the Company is actively pursuing market expansion as a crucial component of its diversification strategy with a view to reinforcing resilience and long-term sustainability.

“We recently completed the long-planned upgrade of our manufacturing facility in Oregun, Lagos, which was originally established in 1976. This upgrade aligns with Good Manufacturing Practices (GMP) and enhances our cGMP compliance. We are also embarking on capacity upgrade of the plant to improve its manufacturing capacity” he said.

He added that Neimeth recognises the critical role of research and development (R&D) in driving innovation and maintaining market leadership, and thus remains committed to the whole chain of local capacity development including product formulation, manufacturing, and distribution.

He noted that the company’s vision of being “the leading innovative healthcare provider out of Africa” strengthens its resolve to develop high-quality medicines tailored to Africa’s unique health challenges.

“We have made substantial investments in research and development, focusing on internal innovations through formulation of new products and enhancement of existing formulations to improve efficacy and accessibility. Focus has also been placed on external collaborations through partnerships with medical and pharmaceutical researchers to develop new products, particularly those leveraging indigenous raw materials to address neglected disease areas at affordable costs, and import substitution initiatives, by reducing dependency on imported manufacturing inputs and localizing production capabilities and resourcing,” Okelu said.

He pointed out that with strategic investments maturing, the company is poised to return to profitability and resume dividend payments in the near future.

Neimeth International Pharmaceuticals Plc doubled sales to N3.09 billion in the third quarter in a major turnaround that saw the healthcare company’s operating efficiency on its highest level in recent period.

Key extracts of the interim report and accounts of Neimeth for the third quarter ended September 30, 2024 released at the Nigerian Exchange (NGX) showed that total sales doubled from N1.51 billion in third quarter 2023 to N3.09 billion in third quarter 2024.  Gross profit margin increased from 38.6 per cent in third quarter 2023 to 46.9 per cent in third quarter 2024, underlining the company’s prudent top-line management.

With this, gross profit for the nine months jumped by 149 per cent to N1.45 billion in 2024 as against N583.26 million in 2023. The company reversed its negative bottom-line in 2023 with operating profit of N310.49 million in 2024, compared with operating loss of N575.27 million for the same period in 2023. With this, earnings per share recovered from a loss of 13 kobo in 2023 to a positive 7.0 kobo in 2024.

The balance sheet of the company also emerged stronger as total assets neared the N10 billion mark at N9.69 billion in the nine months ended September 30, 2024, from N8.94 billion recorded by the full year ended December 31, 2023. Shareholders’ funds also rose by 21.1 per cent from N1.47 billion in December 2023 to N1.78 billion by September 2024.

Underlying financial metrics showed that the robust performance of the company was driven by stronger fundamentals. Operating profit margin stood at 10.02 per cent by third quarter 2024 from -38.06 per cent by third quarter 2023. Where the company was making an average loss of N37.86 on every N100 unit of sales in the previous year, the company made a profit of N10.02 on every similar unit of sales in 2024.

Pre-tax profit margin stood at 10.02 per cent and -37.86 per cent in 2024 and 2023 respectively.

Investors’ value creation also improved remarkably during the period. Return on total assets recovered from -6.4 per cent by third quarter 2023 to 3.2 per cent by third quarter 2024. Return on equities also improved from -38.9 per cent to 17.4 per cent.

Managing Director, Neimeth International Pharmaceuticals Plc, Pharm Valentine Okelu, said the performance showed the success of ongoing strategic initiatives aimed at solidifying the company’s position as a leading healthcare provider in Africa.

He said the top-line performance indicated that Neimeth is not only growing its production capacity, but also effectively gaining more customers and market share.

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He said the recent facility upgrade at its Oregun, Lagos factory has substantially  increased installed  capacity , giving the company significant headroom to drive sales.

“We are growing the business and we are quite managing costs so well, despite the inflationary pressures and other challenges in the larger economy.  We are confident we will be able to hit our targets and create sustainable values for our shareholders,” Okelu said.

He assured shareholders and other stakeholders that the company remains committed to product innovation, research and development while building enduring values for all stakeholders.