Despite all odds as dictated by COVID-19 pandemic, Neimeth International Pharmaceuticals Plc has sustained appreciable growth in the third quarter as double-digit growth in sales and improved operational efficiency drove the bottom-line by 664.8 per cent to N237.6 million during the nine-month period.
Key extracts of the interim report and accounts of Neimeth for the nine-month period ended June 30, 2020 released at the Nigerian Stock Exchange (NSE) showed that turnover rose by 42.6 per cent, providing the linchpin for gross profit and operating profit to rise by 70.3 per cent and 247.16 per cent respectively. Net profit thus grew by 664.8 per cent. Earnings per share jumped by 550 per cent, underscoring strong potential for increased dividend payment for the current business year.
The report showed appreciable growths across all business segments as increased market share in Nigeria was further boosted by resumption of export sales. For instance, veterinary business rose by 300 percent from N82 million to N317 million in nine months of 2020.
Turnover rose to N2.01 billion in third quarter 2020 as against N1.41 billion recorded in comparable period of 2019. Gross profit crossed a billion naira to N1.10 billion by June 2020 compared with N646.05 million posted by June 2019. Operating profit more than tripled from N117.06 million to N406.38 million. Profit after tax leapt to N237.63 million by June 2020 as against N31.07 million recorded in corresponding period of 2019.
The report indicated earnings per share of 13 kobo for the nine-month period ended June 30, compared with 2 kobo in comparable period of 2019. The substantial increase in distributable earnings places Neimeth in good stead for dividend payment, after shareholders at their annual general meeting in March 2020 approved a balance sheet restructuring that is expected to wipe out accumulated losses and prime the company for dividend payment from net profit.
The balance sheet of the healthcare company also emerged stronger. Total assets rose by 124.7 per cent to N6.18 billion by June 2020 as against N2.75 billion recorded by the year ended September 30, 2019. Total equity also increased by 21.5 per cent from N1.07 billion to N1.3 billion.
Managing Director, Neimeth International Pharmaceuticals Plc, Matthew Azoji, said the growth in the period under review showed that the company’s growth strategies are resilient and have continued to gain traction.
According to him, the third-quarter results lent credence to improving positive impact from the company’s medium-term strategic growth plan as it strives to open additional markets while consolidating its major domestic market.
“These nine-month results are clear indications of the directions we want to go. We are growing our domestic market while opening up the export market, giving us the top-line diversification that we need to sustain growth despite the vagaries. Improving margins across our major business lines of pharmaceuticals and animal health are pointers to the general operating efficiency as we seek the best blend of strategies to grow our business as well as shareholders’ value,” Azoji said.
He pointed out that the company’s strategic growth plan for 2020-2024 would strengthen Neimeth’s market leadership in Nigeria while providing opportunities to optimise gains from intra-African trade, especially within the West African and larger Sub-Saharan Africa (SSA) region.
He outlined that the company would implement major expansionary initiatives including upgrade of existing factory and development of new manufacturing facilities in line with the overall strategy to become the manufacturing hub for pharmaceuticals and healthcare products in Sub-Saharan Africa.
“In the last quarter of the year, while we acknowledge the negative impact of the COVID-19 pandemic, we will continue to drive our market share and cost control to ensure we close strong. We remain focused on delivering greater value to our shareholders, who have been supportive of the transformation plan of the company,” Azoji said.
He said Neimeth will continue to prioritise investments in research and development in its quest to develop domestic healthcare capacity and increase local content in national drug development and use.
Azoji said many of the company’s products have been helpful as safeguards against the ravaging COVID-19 pandemic, assuring that Neimeth will continue to deploy its expertise and resources to helping Nigeria overcome the global pandemic.
Credit: thenationonlineng.net
