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Business News

Neimeth Plc is out of the woods

Neimeth International Pharmaceuticals Plc has recommended that the sum of N86,325,333.00 being part of the sum standing to the credit of share premium

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Neimeth International Pharmaceutical Plc

Neimeth International Pharmaceuticals Plc has bounced back from its losses in the prior year going by its recently released FY 2017/2018 results.

Turnover increased from ₦1.53 billion in 2016 to ₦2.27 billion in 2017. Profit before tax stood at ₦202 million from a loss of ₦404 million in 2017 while profit after tax stood at ₦184 million as against a loss of ₦411 million in 2017.

Pharma revenues are up 

Revenue from its Pharmaceutical segment surged from ₦1.5 billion in 2017 to ₦2.24 billion in 2018, while revenue from its Animal health plummeted from ₦35 million in 2017 to ₦28 million in 2018.

Reward for shareholders

The firm has recommended a bonus issue of 1 new share for every 10 shares already held. Qualification date for the bonus shares is Thursday, 17th January 2019.

Rough years of the past

Pharmaceutical companies, like other manufacturers, had a challenging working environment in the last two years. Activities of cheap imports from Asian countries and influx of adulterated drugs impacted on their profitability.

A foreign exchange crisis that only abated in 2017 meant that access to foreign exchange to buy raw materials was difficult. Where available, it threw spanners into most projections.

These factors left Neimeth struggling, although other players such as May and Baker and Fidson seem to have kept their heads above water. One could say the company clearly suffered a horrible year in 2017.

Its turnover fell from ₦2 billion in 2016 to ₦1.5 billion in 2017, while Gross profit fell from ₦1.2 billion in 2016 to N929 million in 2017. The company also recorded a Loss Before Tax of ₦404 million, compared to a Profit Before Tax of ₦95 million in 2017. A fire incident at its Oregun warehouse in march last year led to a loss of raw materials worth ₦513 million. Full and final insurance payments of ₦190 million reduced the loss to ₦322 million.

About Neimeth

Neimeth International Pharmaceuticals Plc was incorporated on 30th August 1957 as a limited liability company. It commenced operations in 1958. On May 14th, 1997, Pfizer NY divested from the company through a management buyout. The company then underwent a name change to Neimeth Plc.

The stock is currently trading at N0.79 in today’s trading session on the Nigerian Stock Exchange, up 9.72%.

 

Fikayo has a degree in computer science with economics from Obafemi Awolowo University. ITIL v3 in IT service management. An alumnus of Daystar Leadership Academy. Prior to joining Nairametrics had stinct in Project management, Telecommunications among others. Also training in Consulting and Investment banking from Edubridge Academy. He has very keen interest in Politics, Agri-business, private equity and global economics. He loves travelling and watching football. You can contact him via [email protected]

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Real Estate

FG to unveil dedicated portal for sale of houses to Nigerians

The Federal Government has announced plans to launch a dedicated web portal for the sale of buildings to Nigerians in the next few weeks.

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Nigeria needs N1.5 trillion within the next 3 years to fix roads - Fashola

The Federal Government has announced plans to launch a dedicated web portal for the sale of buildings to Nigerians in the next few weeks.

The platform is expected to help contributors to the National Housing Fund (NHF) access mortgage loans on a first-come, first-serve basis.

This disclosure was made by the Minister of Works and Housing, Babatunde Raji Fashola while speaking at the ninth meeting of the National Council on Lands, Housing and Urban Development in Jos, Plateau State.

Fashola, who was represented by the Minister of State for Works and Housing, Abubakar Aliyu, pointed out that the ministry is currently at the completion stages of the first phase of the national housing programme in 34 states of the federation, which provided land for it.

He said, “We urge the state governments to alert their residents to this opportunity for interested persons to apply.”

Fashola commended the Federal Mortgage Bank of Nigeria (FMBN) for being at the forefront of the cooperative housing initiative at the federal level, adding that it has the advantage of allowing cooperative members to choose what they design and build to fit their budgets.

They can leverage their members to get group discount for the purchase of building materials as well as the engagement of contractors.

Fashola disclosed that FMBN as the driver of the housing initiative has engaged 86 co-operatives in projects; approved N35, 784 billion cumulatively; disbursed N10.95 billion; and processed as at January, 57 co-operative housing development loans.

Hotflex

Fashola emphasized that what the Federal Government can do directly in housing is limited compared to what states can do, just as state governments are also limited, compared to what the private sector and individuals can do.

He said, “The majority of houses available for sale or rent belong to individuals and private companies compared to what states or Federal Government has available. Therefore, many of the tenants who owe rent, who face eviction or who seek to rent or buy property are dealing with private citizens or companies and less so with government agencies.’

My recommendation for improving access and affordability to housing in the Covid-19 era is for private companies and individuals to give back some of what they control to citizens in the way the Federal Government has given back to citizens some of what it controls.’’

He explained, “for example in cases where the rent of businesses or individuals are due for renewal, the private landlords can give back, by accepting monthly, quarterly or half-yearly rent instead of one year, two or three years rent in advance.”

Bottom line

Nigeria has been bedevilled by a housing crisis that has left Africa’s most populous nation ill-equipped to properly provide accommodation for its citizens and inhabitants.

Some of the housing problems in the country include unresolved rent tenure arrangements, high cost of building materials, access to infrastructure, deficiency of housing finance arrangements, stringent loan conditions from mortgage banks, time to process legal documents and inadequate government housing policies.

Jaiz bank

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Coronavirus

Covid-19: Nigeria committed to procuring 29 million J&J vaccines

The Nigerian Government is still committed to acquiring 29.59 million doses of Johnson & Johnson covid-19 vaccines through the Afrixem Bank AVAT initiative. 

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AstraZeneca suspends COVID-19 vaccine final stage trial over safety concerns, COVID-19: J&J starts vaccine trials on humans after success on monkeys

The Nigerian Government says it is still committed to acquiring 29.59 million doses of Johnson & Johnson covid-19 vaccines through the Afrixem Bank AVAT initiative.

This was disclosed Mrs Zainab Ahmed, Minister of Finance at the recent ‘Collaborative Africa Budget Reform Initiative (CABRI) General Assembly webinar.

What the Minister said

“Therefore, the supplementary budget for COVID-19 vaccines will cover the cost of additional vaccines over and above those provided by COVAX, as well as the full cost of operations and logistics for delivering the vaccines around the country.

Already, the sum of N29.1 billion has been released from the Routine Immunization budgetary provision (Service Wide Vote) to the National Primary Healthcare Development Agency (NPHCDA) as an advance for the operational cost of deployment of the COVID-19 vaccines. The N29.1 billion represents about 52 percent of the amount required over 2021-22,” she said.

She added that FG plans to vaccinate 70 percent of eligible (18 years and above) Nigerians over the 2021 and 2022 fiscal years, with the COVAX agreement willing to cover 43.1 million of the eligible population.

In case you missed it

The World Health Organization (WHO)  announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination. The vaccine is reported to have 79% efficacy against covid.

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