Neimeth International Pharmaceuticals Plc staged a decisive financial turnaround in the year ended December 31, 2025.

Consequently, it is returning to profitability after a challenging prior year, as strong pharmaceutical sales, foreign exchange gains, and operational improvements reshaped its earnings profile.

The company posted a pre-tax profit of N1.49 billion, reversing the pre-tax loss of N854.43 million recorded in 2024, according to its financial results filed with the Nigerian Exchange (NGX).

This marked a remarkable 274 percent year-on-year improvement and signalled a renewed growth trajectory for the pharmaceutical manufacturer.

Foreign Exchange Gains and Operational Recovery Drive Earnings

A key contributor to the rebound was a foreign exchange gain of N48 million, a sharp contrast to the foreign exchange loss of over N2 billion suffered in the previous year.

This shift, combined with improved cost management and revenue expansion, significantly strengthened operating performance.

Notably, the company’s recovery accelerated in the final quarter of the year.

In Q4 2025 alone, Neimeth delivered a profit before tax of N1.15 billion, compared to a loss of N1.16 billion in Q4 2024.

This result also represented a substantial jump from the N340 million pre-tax profit recorded in Q3 2025, underscoring sustained momentum into year-end.

Revenue Jumps 64% on Pharmaceutical Segment Expansion

Neimeth’s top-line performance reflected robust demand across its core pharmaceutical portfolio.

Revenue rose by 64 percent year-on-year to N7.37 billion, up from N4.49 billion in 2024.

The pharmaceutical segment accounted for the overwhelming share of this growth, generating N7.18 billion of total revenue.

In contrast, the animal health segment remained largely unchanged, contributing N187.55 million, highlighting the company’s growing reliance on human pharmaceutical products as its primary growth engine.

Margins Expand as Cost Efficiency Improves

Gross profit climbed sharply to N3.35 billion, representing a 71 percent increase from N1.96 billion in the prior year.

This translated into a stronger gross margin, driven by lower cost of sales relative to revenue growth and pointing to improved production efficiency and pricing discipline.

Operating profit surged to N2.71 billion, a dramatic leap from N18.89 million in 2024.

The combination of revenue growth and foreign exchange gains played a pivotal role in this expansion, reinforcing the operational leverage embedded in the business.

Bottom-Line Returns to Positive Territory

Profit after tax stood at N982.11 million, compared to a loss of N885.33 million a year earlier.

Consequently, basic and diluted earnings per share improved to 22.98 kobo, reversing the negative earnings of -20.72 kobo recorded in 2024 and restoring shareholder value.

Rising Costs Reflect Scale and Balance Sheet Adjustments

Despite the strong earnings rebound, cost pressures intensified during the year.

Administrative expenses rose by 88 percent year-on-year, largely due to higher impairment charges and increased staff-related costs associated with expanded operations.

Finance costs also climbed, increasing by 40 percent to N1.22 billion.

This reflected the restructuring of borrowings and higher interest expenses tied to increased debt levels.

Balance Sheet Strengthens Despite Lower Cash Levels

On the balance sheet, total assets grew by 25 percent to N14.93 billion, up from N11.99 billion, supported by higher inventories and investment properties aligned with expanded production and distribution activities.

However, cash and cash equivalents declined to N1.61 billion from N2.15 billion, reflecting cash outflows linked to inventory build-up and debt servicing. Total external debt rose to N9.68 billion from N5.36 billion, following a strategic refinancing programme.

During the year, the company injected N6.7 billion in new financing while repaying N2.2 billion in existing obligations.

Management indicated that this restructuring helped stabilise the company’s funding profile and improved operational liquidity.

Market Responds Positively on the NGX

Investors reacted favourably to Neimeth’s financial resurgence. The company’s shares closed at N10.75 on Monday, February 2, 2026, representing a 9.7 percent gain from the N9.80 closing price on January 30, 2026.

Since the start of the year, the stock has risen by 69 percent from its opening price of N5.80, ranking 14th on the NGX in year-to-date performance. Neimeth currently holds a market capitalisation of N41.9 billion, with 4.27 billion shares outstanding, accounting for approximately 0.039 percent of the total NGX equity market value.

 

Outlook Anchored on Core Pharmaceutical Growth

With profitability restored and revenue momentum firmly anchored in pharmaceutical sales, Neimeth enters the new financial year with renewed investor confidence.

While rising costs and higher leverage remain areas to watch, the company’s 2025 performance underscores a successful operational reset and positions it for more stable growth going forward.