Exchange loss erodes Neimeth International Pharmaceuticals profits in nine months

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By Kayode Tokede

With N188.05 million foreign exchange loss in nine months of 2020 from N32.47million in nine months of 2019, Neimeth International Pharmaceuticals Plc has reported drop in its profits for the period.

The company reported 2.3 per cent and 3.5 per cent drop in profit before tax and profit after tax  in its nine months ended September 30, 2020 unaudited results respectively.

The pharmaceuticals company in its results to the Nigerian Stock Exchange (NSE) reported N297.4 million PBT in nine months ended September 30, 2020 compared to N304.44 million reported in nine months ended September 30, 2019.

Also, profit for the period thus dropped to N212.48 million in nine months of 2020 as against N220.15 million reported in prior nine months of 2019.

According to the unaudited results, the company reported N2.84 billion revenue in the period under review, about 20 per cent increase from N2.37 billion reported in prior results.

The breakdown of revenue revealed that Nigeria contributed N2.81 billion in nine months of 2020 from N2.35 billion in nine months of 2019 while revenue from Ghana grew by 95 per cent to N32.34 million in nine months of 2020 from N16.55 million reported in nine months of 2019.

Our correspondent gathered that the company reported N29.3 million non-core income in the period from N2.55 million reported in prior results as lease rental income contributed N19 million in the period under review.

From the balance sheet position, the company reported N6.4 billion total assets as at September 30, 2020 from N2.75 billion reported in full year ended December 31, 2019, driven primarily by N2.6 billion cash and cash equivalents.

The copany’s unaudited results for the half year ended March 31, 2020, had showed a turnover of N1.165  billion, up from N976 million in the corresponding period of 2019. Profit after tax soared by 939 per cent from N5.447 million to N56.596 million in 2020.

However, the improved results did not come to many market analysts as a surprise given the promise made by the managing director of the company, Matthew Azoji, to shareholders at the company’s last annual general meeting (AGM).

According to him, Neimeth’s medium term strategic plan aims at building on the enviable pedigree of the six decades old company unto a new era of greater achievements for all stakeholders.

“Our strategic plan is to reposition the company to play greater roles in the healthcare industry, deliver better returns on investment to shareholders and greater benefits to all other stakeholders,” Azoji said.

He said the company would continue its deliberate strategy of cost management to ensure that top-line gains translate into improvement in returns to shareholders.

Azoji said the strategic direction for 2020-2024, is to initiate bold and gradual expansion initiatives that would see the company increasing market share in the healthcare industry.

He said the five-year strategic plan would guide the company’s vigorous expansion programme, which include the upgrade of the company’s factory at Oregun, Lagos State, development of new manufacturing facilities and expansion of the company’s marketing drive to Sub-Saharan Africa.