MeCure Industries’ 9M 2026 pre-tax profit rises 35.71% to N8.64 billion

MeCure Industries Plc has released its unaudited financial results for the nine months ended 30 September 2026, reporting a pre-tax profit of N8.64 billion.

This represents an increase of 35.71% from N6.37 billion recorded in the corresponding period of 2025.

The growth in profitability was supported by a 17.05% increase in revenue to N70.24 billion from N60.01 billion, alongside a 50.87% reduction in marketing expenses.

Consequently, profit after tax increased by 35.71% to N6.05 billion from N4.46 billion, while earnings per share rose by 36.04% to N1.51 from N1.11.

Key Highlights

The figures compare 9M 2026 with 9M 2025, except balance sheet items, which are compared with December 2025.

• Revenue: N70.24 billion (Up 17.05% YoY from N60.01 billion).
• Cost of sales: N46.11 billion (Up 16.44% YoY from N39.60 billion).
• Gross profit: N24.13 billion (Up 18.22% YoY from N20.41 billion).
• Marketing expenses: N1.30 billion (Down 50.87% YoY from N2.64 billion).
• Administrative expenses: N5.78 billion (Up 18.33% YoY from N4.89 billion).
• Operating profit: N17.49 billion (Up 34.32% YoY from N13.02 billion).
• Finance costs: N8.84 billion (Up 32.99% YoY from N6.65 billion).
• Total assets: N93.35 billion (Up 13.90% from N81.96 billion).
• Cash and cash equivalents: N4.32 billion (Down 33.28% from N6.48 billion).
• Total equity: N24.59 billion (Up 24.04% from N19.82 billion).

Driving the numbers

MeCure’s nine-month performance was driven mainly by stronger pharmaceutical sales, particularly in acute medicines, over-the-counter products, and narcotics.

Revenue increased by 17.05% to N70.24 billion, with acute medicines contributing N40.24 billion, representing approximately 57.29% of total revenue.

• Acute medicine sales increased by 19.62% from N33.64 billion, making the category the company’s largest revenue contributor.
• Over-the-counter products also recorded strong growth, increasing by 28.35% to N14.61 billion from N11.38 billion, contributing 20.80% of total revenue.
• Narcotics revenue increased by 168.71% to N2.83 billion from N1.05 billion, while chronic medicine sales rose by 2.39% to N5.56 billion.
• However, multivitamin sales declined by 32.41% to N5.75 billion from N8.50 billion, partly offsetting gains across other product categories.
• Contract manufacturing contributed N935.50 million, while promotional sales generated N315.98 million.

On direct costs, dost of sales increased by 16.44% to N46.11 billion, driven mainly by direct materials consumed, which rose by 7.41% to N38.85 billion from N36.17 billion.

• Direct materials accounted for approximately 84.26% of total production costs, highlighting their importance to profitability.
• Depreciation within production costs increased to N4.27 billion from N3.66 billion, while direct labour expenses rose to N1.18 billion from N906.28 million.

Despite these pressures, gross profit increased by 18.22% to N24.13 billion, with gross profit margin improving marginally to 34.35% from 34.01%.

Operating expenses

Marketing expenses declined significantly by 50.87% to N1.30 billion from N2.64 billion, providing support to operating profitability.

• However, administrative expenses increased by 18.33% to N5.78 billion from N4.89 billion.
• Employee costs increased to N1.30 billion from N885.43 million, while other expenses rose to N1.51 billion from N891.90 million.

Consequently, operating profit increased by 34.32% to N17.49 billion from N13.02 billion.

Finance costs remained a major pressure on profitability, increasing by 32.99% to N8.84 billion from N6.65 billion.

• Bank interest accounted for N8.11 billion, while bank commissions and charges contributed N732.50 million.
• Finance costs absorbed 50.56% of operating profit, limiting the amount available as pre-tax earnings.

Balance sheet

MeCure’s balance sheet expanded by 13.90% to N93.35 billion from N81.96 billion in December 2025, supported by increased investment in property, plant and equipment.

• Property, plant and equipment increased to N53.07 billion from N40.64 billion, reflecting N16.69 billion in additions during the period.
• Inventories increased to N18.24 billion from N15.77 billion, while cash and cash equivalents declined to N4.32 billion from N6.48 billion.

Total equity increased to N24.59 billion from N19.82 billion, while interest-bearing debt stood at N59.51 billion.

Market reaction

MeCure Industries’ share price closed unchanged at N56.20 on 28 October 2026, the date its unaudited nine-month financial statements were approved.

The stock has recorded a year-to-date decline of 13.80% from its opening price of N65.20, despite the improvement in nine-month profitability.

Month-to-date performance was flat at 0.00%, with the share price remaining unchanged throughout the ten trading sessions shown.