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Operating efficiency boosts Neimeth’s profit by 83%

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By Peter  Egwuatu

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NEIMETH International Pharmaceuticals Plc has grown its bottom line for the 2018/2019 audited accounts posting a Profit Before Tax, PBT, of N304.4million, representing an increase of 82.9 per cent from N166.5 million in 2017/2018.

The company has attributed the profit growth to improved operating efficiency during the period under review.

Meanwhile, the first quarter results for the current financial year which began October 1, 2019 showed that the company sustained impressive growth in both sales and profitability.

Details of the audited report and accounts of Neimeth International Pharmaceuticals for the year ended September 30, 2019 showed that administrative expenses dropped by N168 million to N375 million for 2018/2019 business year, from N543 million in 2017/2018 financial year, representing a 30.9 per cent decrease during the period.  Also, its operating profit grew by 47.9 per cent to N413.38 million in 2019 as against N279.42 million in 2018.

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Finance costs also declined from to N108.9 million from N112.96 million. Net profit increased by 48.7 per cent to N220.15 million from N148.02 million for the two periods respectively. Earnings per share rose by 50 percent to 12 kobo in 2019 as against 8.0 kobo in 2018.

The top-line had sustained steady growth as turnover rose to N2.37 billion in 2019 from N2.27 billion in 2018. Gross profit margin also indicated similar modest growth rising to N1.20 billion in 2019 from N1.16 billion in 2018.

The company’s balance sheet also showed considerable improvements as total assets grew by 19 per cent to N2.75 billion in 2019 compared with N2.31 billion in 2018.  Shareholders’ funds improved by 24.6 per cent from N858.83 million to N1.07 billion.

The first quarter report for the three-month period ended December 31, 2019 showed that turnover leapt by 167.1 per cent to N606.5 million compared with N227.07 million recorded in comparable period of 2018/2019 business year. Gross profit quadrupled by 465.6 per cent from N53.52 million to N302.71 million. The company replaced operating loss of N119.3 million in December 2018 with operating profit of N111.68 million by December 2019.

Managing Director/CEO, Neimeth International Pharmaceuticals Plc, Pharm. Matthew Azoji, said the results were evidence that the company has regained its momentum and steadily growing its market share.

He said the company’s medium term strategic plan aims at building on the enviable pedigree of the six decades old company unto a new era of greater achievements for all stakeholders.

“Our strategic plan is to reposition the company to play greater roles in the healthcare industry, deliver better returns on investment to shareholders and greater benefits to all other stakeholders,” Azoji said.

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