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Company Results

Pharmaceuticals: Pharma-Deko’s revenue declines by 49.4% in H1 2020

Pharma-Deko recorded a decrease in revenue compared with its competitors.

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Pharma Deko Plc, Pharma Deko Plc records 1.16% increase in 2020 9M revenues

Analysis of H1 2020 results of the NSE listed Pharmaceutical companies indicates that only Pharma-Deko recorded decreased revenues in H1 2020 – a 49.4% decrease.  

Compared with the same period in 2019, Fidson Healthcare Plc recorded an 11.3% increase in revenues, GSK Consumer Nigeria Plc recorded a 4.7% increase in revenues, and May & Baker Nigeria Plc recorded a 0.4% increase in revenues.   

The above results confirm that listed pharmaceutical companies are taking advantage of disruptions caused by the COVID-19 pandemic on businesses to boost revenues. Some of these companies also grew their pre-tax profits. The pre-tax profits of Fidson Healthcare Plc grew by 81.4% and May & Baker Nigeria Plc grew by 50.9%.

  • Pharma-Deko Plc manufactures, packages, and markets a range of pharmaceutical and consumer products in Nigeria. It was established in 1962 and formerly known as Parke-Davis & Company. The company changed its name to Pharma-Deko Limited in 1990.
  • Pharma-Deko Plc is divided broadly into three (3) divisions: Pharmaceutical business group, Consumer business group, and Contract manufacturing group. These divisions also represent its three revenue-generating segments.

The company’s pharma brands are divided into OTC brands and Ethical products. The consumer brands include the non-sugar based carbonated soft drink (CSD) market. The company introduced the first locally canned drinks in Nigeria and asserted that it enjoys more than 70% of the canned drinks market sub-sector. The company is also involved in contract manufacturing and packaging of both pharmaceutical and fast-moving consumer goods. 

An in-depth analysis of the latest results of the company reveals that revenues plummeted by 49.4%, while other listed pharmaceutical companies took advantage of the COVID-19 pandemic to record increased H1 2020 revenues.  

Revenues from the pharmaceutical revenue-generating segment of the company dipped by 18.2% from N26.3 million in the same period last year to N21.6 million in H1 2020.

While revenues from the consumer revenue-generating segment dipped by 52.7% from N247.6 million in the same period last year to N117.1 million in H1 2020.

No revenue was recorded for the contract revenue-generating segment in the period under consideration.  

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Pharma-Deko Plc’s shares were listed on the floor of the NSE on April 18th, 1969. The shares currently trade at N1.5 per unit. The highest price for a unit of share in 52 weeks was N1.65 and the lowest N1.35. A total of 49,508 units was sold in the last seven days’ trades. Shares outstanding is 216.8 million units and its market capitalization as at close of business on Tuesday, 13th October 2020 was N325.2 million. 

The N177.4 million post-tax loss recorded in H1 2020 is an indication that there was no distributable profit. Thus, the H1 2020 Earnings Per Share (EPS) of the company was a deficit -81.7 kobo.   

Neimeth International Pharmaceuticals Plc operates in the same sub-sector as Pharma-Deko Plc. Its share price is N1.87. The highest price for a unit of share in 52 weeks was N2.57 and the lowest N0.37. A total of 9.8 million units were sold in the last seven days trades. Shares outstanding is 1.9 billion units and its market capitalization as at close of business Tuesday, 13th October 2020 was N3.6 billion.  

What you should know 

While the company hopes for the best, performances may not improve in the near future.  Further analysis indicated that internal crises partly constitute the issues that translate into declined profitability.

According to the employees of the company, after 11 years of inadequacy, they took to the streets of Agbara Industrial Estate, Ogun state last year to protest the alleged gradual collapse of the company. The aggrieved employees cited mismanagement of the company’s resources as the reason behind their grievances. It appears the fortunes of the company have not changed since then. 

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Employees, led by their various plant unions – Food, Beverage and Tobacco Senior Staff Association (FOBTOB); and National Union of Food, Beverage, and Tobacco Employees (NUFBTE), called on the company’s board to act in order to save the company from collapsing.   

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 What they are saying  

The joint unions of the aggrieved employees noted that if the company collapses, it will be a result of mismanagement. They said, “Ours is a clear case of mismanagement; hence, we the members of staff, both Junior and Senior employees have refused to sit down, fold our hands, and do nothing, while we watch our company become history.” 

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Adeyemi holds a PhD in Accounting Sciences. He has worked in the Educational Sector and as an Independent Consultant.

1 Comment

1 Comment

  1. [email protected]

    October 14, 2020 at 6:59 pm

    The pharmaceutical company is a feed for healthy products of medicines for the population of people who need it. Money to run it successfully is need. Humans power is need. The safe and the doctors working, so hard for new medicine to cure disease and sickness. Hat humans may be faced. Need a helping hand apart from the comparing of others wealthy pharmaceutical with not sure problems. I will advise the government to help them. B. B

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Company Results

Rak Unity Petroleum Company Plc Posts N63 million loss in 2020 FY results

Rak Unity Petroleum Company Plc reported revenue of N1.41 billion representing a 68.14% decline from the N4.42 billion revenue reported a year earlier.

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Focus: This small-cap oil company is seriously lagging behind

Rak Unity Petroleum Company Plc released its 2021 FY results reporting total revenue of N1.41 billion representing a 68.14% decline from the N4.42 billion revenue reported a year earlier.

  • Operating expenses during the year was N149.65 million in 2020 compared to N221.89 million in 2019. –32.56% YoY
  • The company reported a loss after tax of N63.02 million in 2020 compared to N14.52 million loss after tax in 2019.
  • It reported a loss per share of N1.11  in 2020 compared to N0.26 loss per share reported in 2019.
  • No dividend announcement was made in their press release.
  • The company share price of N0.30 unchanged YTD.

See link to results here

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Company Results

Conoil posts 23% post-tax profit decline in 2020 FY results

Conoil Plc reported a revenue of N117.47 billion representing a 15.95% decline from the N139.76 billion revenue reported a year earlier.

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Conoil Plc released its 2021 FY results reporting revenue of N117.47 billion representing a 15.95% decline from the N139.76 billion revenue reported a year earlier.  

  • Operating expenses during the year was N7.64 billion in 2020 compared to N9.68 billion in 2019. 20.9% YoY 
  • The company reported a profit after tax of N1.52 billion in 2020 compared to N1.97 billion in 2019. –22.97% cut YoY.  
  • It reported an earnings per share of 219 kobo in 2020 compared to 284 kobo earnings per share reported in 2019. 22.89% YoY. 
  •  No dividend announcement was made in their press release. 
  • The company share price of N20.85, up +0.72% YTD. 

See link to results here

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Companies

Ecobank Group Posts N630 billion Revenue in 2020

Ecobank Group has recorded a revenue of over N630 billion for the year ended December 31, 2020.

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Ecobank Transnational's 32nd AGM

Ecobank Group has recorded a revenue of over N630 billion for the year ended December 31, 2020. This represents a 7% growth when compared to N586.9 posted in the corresponding period of 2019.

In its unaudited report submitted to the Nigeria Stock Exchange (NSE) on Friday, the pan-African bank stated that value of its total assets now stands at N10.2 trillion after a 19% rise.

The bank also recorded superlative performance in other key financial indices despite the harsh operating environment.

READ: Investors get burnt, lose $1.6 billion in crypto within a day

Summary of the report showed that Deposits from customers went up 23% to N7.3 trillion; Total equity up 17% to N805.1 billion; while Loans and advances to customers grew by 9% to N3.7 trillion.

However, despite the bank’s good showing in deposits from customers and revenue, profits was impacted by the provisioning for goodwill for the acquisition of Oceanic Bank in 2011. Consequently, the bank ended with profit after tax of N35.9 billion, while profit before tax and goodwill impairment closed at N126.4 billion.

READ: Nigeria generates N1.53 trillion VAT in 2020, grows by 29%

The Ecobank Group had stated that it is optimistic that with clean book aftermath of the full provisioning for Oceanic Bank, it will improve on its profitability in 2021 and other years ahead.

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