Neimeth International Pharmaceuticals Plc has announced a 405 per cent growth in profit before tax for its 2010 financial year.

According to a statement on its 2010 financial performance, signed by Okay Nwaka, Head, Corporate Affairs/General Services, the company said the improvement on its pre-tax profit was in spite of a sluggish growth in turnover of less than two per cent, largely due to late delivery of invoiced good,

He added that the benefits of a significantly improved cost management regime were manifest.

Nwaka said that the company, at its last annual general meeting had announced that it was in the last phase of its transformation from company that depended on franchised and licensed products to one that would depend on its own indigenously developed products and brands.

He added that the benefit of the transition programme has been evident as cost of sales dropped significantly from 53 per cent of sales from last year to 40 per cent of sales this year.

“As a result of this, the company achieved N123.4 million profit before tax as against a loss of N40.5m in its 2009 financial year. The company is set to return to its usual practice of paying dividend to shareholders,” he noted.

He expressed optimism that its turnover will jump in the current year just as the profit jumped in the previous year under review because of the ongoing efforts at new products launch and market expansion.

He further stated that the management of the company is particularly elated by this performance as the President/CEO, Mazi Sam Ohuabunwa, had earlier promised shareholders, customers and staff of the anticipated rebound of Neimeth at the 2010 annual general meeting.