By Peter Egwuatu
Neimeth International Pharmaceuticals Plc has grown its bottom-line by 938.5 per cent as increasing market share and cost management strategies lifted the healthcare company to its best performance in four years.
Investors reacted with a scurry for Neimeth’s shares, triggering a demand-driven share price appreciation that has seen the stock as one the best-performing stocks at the Nigerian stock market with capital gain of 79.2 per cent in recent weeks.
Interim report and accounts of Neimeth for the six-month period ended March 31, 2020 released at the Nigerian Stock Exchange (NSE) showed significant growths across key performance indicators with growing sales and operating efficiency driving operating profit by 225.28 per cent.
Total turnover crossed a record N1 billion mark with 19.4 per cent growth to N1.165 billion by March 2020 compared with N975.98 million recorded in comparable period of March 2019. The top-line growth was driven by increased sales in its domestic Nigerian market. The company recorded growths across its two business segments of pharmaceuticals products and animal health products with the animal health products showing strong prospects for the top-line with 897.5 per cent growth during the period.
Profit after tax leapt by 938.5 per cent to N56.6 million by March 2020 compared with N5.45 million by March 2019. Earnings per share thus jumped from 0.29 kobo in March 2019 to 2.98 kobo by March 2020.
Neimeth’s share price opened this week at the Nigerian Stock Exchange (NSE) at 86 kobo per share, representing an increase of 79.2 per cent on market value per share of 48 kobo recorded by the period ended March 31, 2020.
Managing Director, Neimeth International Pharmaceuticals Plc, Pharm Matthew Azoji, said the half-year results built on steady growths witnessed in recent periods and further demonstrated that Neimeth is firmly on an upward growth trajectory.
He said the results showed early gains of the company’s five-year strategic plan noting that the company would vigorously expand and reposition its businesses to cement its position as a leading player in not only Nigeria’s healthcare industry but also in the wider West African region while simultaneously ensuring good returns on investment to shareholders.
According to him, the strategic direction for 2020-2024 would see the company implementing bold and gradual expansion initiatives including the upgrade of its factory at Oregun, Lagos state; development of new manufacturing facilities and expansion of the company’s marketing drive to Sub-Saharan Africa (SSA).