Neimeth Surges to N3.1 billion revenue in remarkable turnaround
By Felicia Nwosu
Neimeth International Pharmaceuticals Plc has reported a dramatic improvement in its financial performance, with revenue soaring to N3.09 billion in the third quarter of 2024. This represents a twofold increase from the N1.51 billion recorded in the same period of 2023, signaling a shift toward stronger operational and strategic outcomes.
The company’s financial statement for the nine months ending September 30, 2024, presented on the Nigerian Exchange, highlighted an increase in gross profit margin to 46.9 percent from 38.6 percent in the previous year. This resulted in a gross profit of N1.45 billion, a 149 percent jump compared to N583.26 million a year earlier.
The financial statement also disclosed that the organization turned around its previous loss, achieving an operating profit of N310.49 million for the nine-month period. This marked a recovery from an operating loss of N575.27 million in 2023. Earnings per share moved into positive territory, rising to 7 kobo from a 13 kobo loss, reflecting a robust improvement in profitability.
It maintained that the Total assets climbed close to N10 billion by the end of the third quarter, up from N8.94 billion at the end of 2023. Equity also grew by 21.1 percent to reach N1.78 billion, compared to N1.47 billion at the start of the year.
With this new turn-over, the company’s cost optimization efforts and revenue growth led to a substantial improvement in operational efficiency. Profit margins for the period stood at 10.02 percent, a significant recovery from the negative 38.06 percent reported in the prior year. Pre-tax margins followed a similar trajectory, rebounding from -37.86 percent to 10.02 percent.
There is also an indication that shareholder returns also reflected the strong performance. The firm’s return on assets improved from -6.4 percent to 3.2 percent, while return on equity jumped from -38.9 percent to 17.4 percent, demonstrating better value generation for investors.
The improved outcomes were largely attributed to expanded production capacity following the recent upgrade of its Lagos facility. This expansion enabled the company to meet increased demand efficiently, even amidst challenging economic conditions such as rising inflation.
The company’s chief executive noted that these results reflect the success of ongoing restructuring and growth initiatives aimed at strengthening its position in the healthcare market. He highlighted the organization’s focus on innovation, research, and delivering sustainable growth for all stakeholders.
“We are scaling operations effectively while maintaining disciplined cost controls. Despite external challenges, we are confident in our ability to meet targets and deliver significant value to our stakeholders,” he stated.
Neimeth reaffirmed its commitment to providing advanced healthcare solutions, fostering innovation, and enhancing the well-being of its customers, investors, and the broader community
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