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Neimeth Pharmaceuticals records high Topline, as earnings stay downbeat

Neimeth International Pharmaceuticals Plc closed its books for the quarter with an impressive half-year financial scorecard, showing the highest revenue recorded in the corresponding period in the last six years.



Neimeth Pharmaceuticals records high Topline, as earnings stay downbeat

Impressive Second Quarter Masks Poor Q1 Performance: Neimeth International Pharmaceuticals Plc closed its books for the quarter with an impressive half-year financial scorecard, showing the highest revenue recorded in the corresponding period in the last six years. The firm’s top-line grew by 11.25% to NGN976mn (vs. NGN877mn in H1:2018).

Both business segments — Pharmaceuticals and Animal Health — contributed immensely to the record-record performance. The pharmaceutical business grew by 10% to NGN958mn while the Animal Health business grew significantly by 129.98% to NGN18mn (vs. NGN8mn in H1:2018).

It is noteworthy that the second quarter accounted for 76.73% of total revenue
generated so far in the company’s financial year which ends in September. Hence, Year on
Year revenue growth pegged at 55.05%. The improved revenue performance in Q2:2018
came with a slight increase in trade receivables (+5.40%), at NGN622mn.

Although the firm appears to be recording growth in revenue, a significant proportion of it is held in receivables. Considering that this performance was an outlier in the history of first-halves, and going by past trends, we are projecting a moderate growth of 1.42% in revenue to NGN2.30bn for 2019FY.

Costs-to-Sales Rises above Trend: Cost to sales settled at 53.82%, higher than a six-year average of 50% in corresponding periods. All the elements of direct cost increased
during the period, with the most significant being the cost of raw materials consumed,
which grew by 48.92%.

Overall, the firm recorded a 31.39% growth in cost, from NGN400mn in H1:2018 to NGN525mn. Going by past trends, the firm records slightly higher cost to sales position in the second half of the year. Also, the industry-wide issue regarding the importation
of Active Pharmaceutical Ingredients (APIs) is expected to influence the upward movement
in cost. On a balance of factors, we have made a projection of 49.14% for cost-to-sales.

NEIMETH Narrowly Escapes a Loss Position: In H1:2019, the firm recorded significant
dip in earnings, which dropped by 81.57% to NGN5.44mn, from NGN29.54mn in H1:2018,
despite the cost savings on operating expenses. The woeful performance was a result of the contraction in gross profit by 5.61% and an increase in net exchange loss to NGN9.85mn, from NGN0.27mn in H1:2018. Therefore, the firm recorded a loss amounting of NGN139bn In Q1:2019, after four consecutive quarters of profits. The loss position was an aggregation of several shortcomings such as low demand, heightened cost-to-sales, increased distribution and marketing costs amongst others.

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However, in the second quarter, the firm made a profit of NGN145mn which was sufficient enough to offset the loss made in the previous quarter, although inadequate to deliver growth in earnings. Following our projections in top-line and cost-to-sales, we have made a forecast of 10.30% for net margin, from an earnings level of NGN237mn in 2019FY.

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Recommendation: We revised our 2019 expected EPS downwards to NGN0.12, on the back of lower earnings growth projections. However, we maintain our target P/E at 5.0x considering the low earnings reported during the period. Our target price has therefore been reviewed downwards from NGN1.00 to NGN0.62.


Contact Information
Brokerage and Retail Services
[email protected] (+234 905 569 0627)
[email protected] (+234 7080007861)
[email protected]
Investment Banking/Corporate Finance
[email protected] (+234 8060110856)
[email protected] (+234 808 536 5766)

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FG signs new Sustainable Development Goals agreement with UN

The Agreement is for new development cooperation with initiatives towards achieving Sustainable Development Goals set in the UN Agenda 2030.



Xenophobia, FG reacts to inclusion of Nigeria on religious freedom blacklist by United States

The Nigerian Government has signed a deal with the United Nations to develop new cooperation towards achieving Sustainable Development Goals.

This was disclosed by the Minister of Foreign Affairs, Geoffrey Onyeama, in a statement on Thursday after the agreement was signed with the United Nations Office for Project Services, UNOPS, represented by Ifeoma Charles.

The Minister said, “On behalf of the Nigerian Government, I signed an agreement with the UNOPS represented by Ifeoma Charles Multi-Country Office Rep. The Agreement is for a new development cooperation with initiatives towards achieving Sustainable Development Goals set in the UN Agenda 2030.”

What you should know 

The 17 Sustainable Development Goals are:

No Poverty; Zero Hunger, Good Health, and Well-being; Quality Education; Gender Equality; Clean Water and Sanitation; Affordable and Clean Energy; Decent Work and Economic Growth; Industry, Innovation and Infrastructure; Reducing Inequality; Sustainable Cities and Communities; Responsible Consumption and Production; Climate Action; Life Below Water; Life on Land; Peace, Justice and Strong Institutions; and Partnership for the Goals.

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Business News

Best payment gateway platforms to avoid scams in your business

A payment gateway is a technology used to accept and hasten debit or credit card purchases from customers.



Many businesses in Nigeria have adopted the online payment method because it is safe, fast, secure, and convenient. In recent times, fintech startups in Nigeria have developed safer payment channels to help businesses conveniently receive online payments.

What is a payment gateway?

A payment gateway is a technology used by merchants to accept debit or credit card purchases from customers. Integrating a payment gateway into your business is highly beneficial as it offers a more secure transaction process for your customers. It can also expand your customer base exponentially because many people will have access to your business at all times. The payment gateway offers faster transaction processing and customers can avoid the inconvenience of long queues.

In Nigeria, there is a wide range of payment gateways to choose from as a business owner. Before choosing a payment provider, you have to find out what each provider is offering and at what cost. Also, look out for PCI-compliant and SSL certificates in order to avoid security problems.

Here is a list of the top payment gateway providers and what they offer.


Paystack is a growth engine for a new generation of innovative, forward-looking organizations operating in Africa. The company makes it easy for businesses to accept secure payments from multiple local and global payment channels, while also providing tools to help you retain existing customers, and acquire new ones.

Onboarding and approval take approximately 30 minutes, Paystack accepts payment in USD, GHC, NGN; and offers a wide range of payment methods like Card, Bank Account, Bank Transfer, USSD, Visa QR, and Mobile Money.


  • Integrating Paystack is 100% free.
  • Paystack charges 1.5% + ₦100 for local transactions and 3.9% + ₦100 for international transactions.
  • ₦100 fee is waived for transactions less than ₦2500.


Flutterwave provides the easiest and most reliable payment solution for businesses anywhere in the world. The company makes it easier for Africans to build global businesses that can make and accept any payment, from anywhere across Africa and beyond.

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Onboarding and approval happen immediately. Flutterwave offers a wide range of payment methods like Mastercard, VISA, Bank Account, USSD, Bank Transfer, POS, and Visa QR (for local payments); and Mastercard, VISA, and AMEX (for international payments).


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  • Integrating Flutterwave is free.
  • Flutterwave charges 1.4% for local transactions and 3.8% for international transactions.
  • Processing fees are capped at a maximum of NGN 2,000.


Remita is a payment solution that helps individuals and businesses make and receive payments, pay bills, and manage their finances across multiple banks. Remita accepts payment in Naira and USD.

Remita offers a wide range of payment methods including Internet Banking, Debit/Credit Cards, Bank Branch, POS Terminals, Mobile Wallet, Cash Agents, mPOS, Direct Debit, Standing Order, and Electronic Purse.


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  • Setting up Remita for your business is free.
  • Remita charges 2% for local transactions and 4% for foreign transactions.

Interswitch Webpay

Interswitch is Nigeria’s leading technology-driven digital payments company, helping to shape the payments ecosystem across the growing e-commerce sector in Africa. Interswitch offers a wide range of payment methods including all Nigerian cards, Verve, MasterCard, and Visa. Onboarding and approval take 1 – 2 weeks approximately.


  • Interswitch charges a one-time integration fee of N150,000.
  • For transactions below N133,333, a fee of 1.5% applies, and N2,000 flat fee for transactions above N133,333.


PayU is a global payment platform that provides a secure way for individuals and merchants to accept and process online payments without the need for their own websites. PayU offers a variety of payment methods including Mastercard credit and debit cards, Verve, Visa and EFT bank transfer.


  • PayU has a free setup cost.
  • It has a 2% service charge on all transactions.


Voguepay is an online payment gateway that allows businesses to process payments in any currency from customers all around the world. Vogue accepts payments via local and international payment methods including Verve, Visa, Mastercard, Bank Transfer, and Voguepay wallets.


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  • Vogue pay charges N1500 (with Corporate Affairs Commission Certificate) and N2500 (with Government issued Identity cards) for setup.
  • Local transactions attract a 1.5% charge, while international transactions attract a 3.8% charge.
  • Onboarding and approval to Voguepay take between 1-5 days.


Monnify is a payment gateway that allows businesses to seamlessly process payments from customers from multiple payment channels. It provides an easier and faster way for businesses to receive payments from customers on their web and mobile applications.

Monnify accepts payments via USSD, Internet banking, mobile banking app, and all Nigerian debit cards.


  • Monnify setup fees and maintenance costs are free.
  • The fee for account transfers is capped at N500 per transaction or a flat rate of N300 (excluding VAT).
  • The card fee is capped at N2000 per transaction.



Adopting a payment gateway for your online business can reduce the risk of fraud and also help you retain your customers. This means that your business is open 24/7 and your customers can shop at any time from the comfort of their homes.

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