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.
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%.