Neimeth Pharmaceuticals Plc has reported in its audited financial statement for 2020 that it made a profit of N212.48 million for the year ended 30th September 2020.
This represents a 3.48% decline in profit when compared with the N220.15 million PAT reported in the corresponding period of 2019.
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Key highlights
- Revenue increased to N2.84 billion in 2020, 19.73% Y-O-Y.
- Cost of Sales increased to N1.33 billion in 2020, 13.11% Y-O-Y.
- Gross Profit increased to N1.51 billion in 2020, 26.23% Y-O-Y.
- Other income increased to N29.29 million in 2020, 1049.33% Y-O-Y.
- Marketing and distribution expenses increased to N505.11 million in 2020, 33.90% Y-O-Y.
- Administrative expenses increased to N452.28 million in 2020, 20.54% Y-O-Y.
- Exchange loss increased to N188.05 million in 2020, 479.25% Y-O-Y.
- Operating profit decreased to N393.26 million in 2020, -4.87% Y-O-Y.
- Finance costs decreased to N95.87 million in 2020, -12.00% Y-O-Y.
- Profit after tax decreased to N212.48 in 2020, -3.48% Y-O-Y.
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Bottom line
The report revealed that despite the impressive performance of the core operating segment of the company, and the increase in the revenue generated from the Animal Health segment, the profit of Neimeth Pharmaceuticals was pressured by rising costs in 2020 and this led to 3.48% decline in profit year-on-year.
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Neimeth Pharmaceuticals suffered from substantial cost and expenses increase in 2020, as the increase in production cost, marketing and distribution expenses (driven by increased payment to employees in this department), administrative expenses (driven by expenses paid for conference and meetings, bank charges and commission, communication and subscription, energy cost, insurance and medical expenses) and increase in foreign exchange loss driven by naira devaluation, pressured profitability in 2020.
