Increased sales drove the revenue of Neimeth International Pharmaceuticals Plc to a 105 per cent growth in the nine months ended September 30, 2024.
According to the interim report and accounts of Neimeth for the nine months released on the Nigerian Exchange, total sales doubled from N1.51bn at the end of the third quarter of 2023 to N3.09bn at the end of the third quarter of 2024.
Gross profit margin increased from 38.6 per cent in the third quarter of 2023 to 46.9 per cent in the third quarter of 2024, underlining prudent top-line management.
With this, gross profit for the nine months jumped by 149 per cent to N1.45bn in 2024 from N583.26m in 2023. The company reversed its negative bottom line in 2023 with an operating profit of N310.49m in 2024, compared with an operating loss of N575.27m for the same period in 2023. With this, earnings per share recovered from a loss of 13 kobo in 2023 to a positive 7.0 kobo in 2024.
The balance sheet of the company also emerged stronger as total assets neared the N10bn mark at N9.69 billion in the nine months ended September 30, 2024, from N8.94bn recorded by the full year ended December 31, 2023.
Commenting on the performance of the company in the period under review, the Managing Director, Valentine Okelu, said the performance showed the success of ongoing strategic initiatives aimed at solidifying the company’s position as a leading healthcare provider in Africa.
In a statement made available to The PUNCH on Tuesday, Okelu said the top-line performance indicated that Neimeth is not only growing its production capacity but also effectively gaining more customers and market share.
He said the recent facility upgrade at its Oregun, Lagos factory has substantially increased installed capacity, giving the company significant headroom to drive sales.
“We are growing the business and we are quite managing costs so well, despite the inflationary pressures and other challenges in the larger economy. We are confident we will be able to hit our targets and create sustainable values for our shareholders,” Okelu said.
He assured shareholders and other stakeholders that the company remains committed to product innovation, research and development while building enduring values for all stakeholders.
At the end of September, Neimeth’s operating profit margin stood at 10.02 per cent from -38.06 per cent of the previous year.
Investors’ value creation also improved remarkably during the period. Return on total assets recovered from -6.4 per centby the third quarter of 2023 to 3.2 per cent by the third quarter of 2024. Return on equities also improved from -38.9 per cent to 17.4 per cent.
