By Peter Egwuatu 

Neimeth International Pharmaceuticals Plc is set to restructure its foreign currency denominated loans as the Company’s foreign exchange, FX, losses hit N2.03 billion.

Speaking to the media on the development, Pharm. Valentine Chinedu Okelu, Managing Director/CEO, Neimeth International Pharmaceuticals said: “Neimeth experienced a significant recovery in its operations, positioning us as one of the fastest-growing pharmaceutical companies on Nigerian Exchange Limited, NGX, in 2024. While our external auditors are finalizing the 2024 financials, interim reports and accounts indicate a strong growth outlook driven by fundamental improvements in our business.

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

“However, despite these remarkable achievements, we encountered a significant foreign exchange loss amounting to N2.03 billion, leading to a pre-tax loss of N1.69 billion for the year. “To mitigate this challenge, we are aggressively restructuring our foreign-denominated loans, converting them into naira to shield us 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 further stated that the Company, as part of its strategy to further reduce cost of production, would embark more on sourcing raw materials locally while reducing its imports.

According to him, “Neimeth operates with a well-defined five-year strategic plan focused on product and market diversification. I can confirm that we are actively pursuing market expansion, a crucial component of our diversification strategy that will reinforce our resilience and long-term sustainability”.  

On its financials, he said: “On revenue growth, the Company’s revenue surged by 102%, increasing from N2.2 billion in 2023 to N4.5 billion in 2024. On Profitability, the gross profit recorded a 170% increase, while we reversed a negative bottom line from 2023 with an operating profit of N338.5 million, a 126% improvement over the N1.3 billion loss incurred in the previous year. This represents an absolute profit improvement of N1.638 billion”.