Shareholders of Neimeth International Pharmaceuticals Plc have said that the company now stands on the good stead to make profits and will soon begin to give dividends to shareholders. Various shareholders who spoke at the 66th Annual General Meeting of the company were of the view that the performance of the company has improved to the level that gives confidence that it shall return to profitability very soon.
Neimeth achieved a 103 per cent revenue growth during the 2024 business year despite the daunting environmental challenges in 2024 according to the chairman of the company, Mr. Christopher Oshiafi, Presenting the 2024 business year report to shareholders at the AGM in Lagos. Oshiafi said that the Total sales of the company rose to N4. 485 billion in 2024 as against N2.209 billion in 2023 . He attributed this growth to an invigorated sales volume drive.
Gross profit jumped by 167 per cent from N734.070 million to N1.957 billion. Operating Profit changed from a loss of N1.021 billion in 2023, to a profit of N18.886 million in 2024 a 102 per cent positive growth. During the 2024 business year, several cost management measures adopted by management yielded good results. For instance, despite the 103 per cent increase in sales revenue, marketing and distribution expenses fell by 14 per cent from N792.382 million to N628.176 million. In a similar vein, administrative expenses fell by 28 per cent from N868.115 million to N628.176
However, finance cost rose by 32 per cent from N667.948 million to N873.320 million. A 41 per cent increase in foreign exchange losses from N1.459 billion to N2.047 billion changed the narrative to a loss before tax (LBT) of N854.434 million and loss after tax (LAT) of N885.333 million for the year. Compared to LBT of N1.689 billion and LAT of N1.797 billion in 2023, the company’s performance in 2024 was indeed excellent, Oshiafi said.
Also speaking at the AGM, the Managing Director/Chef Executive of the company. Pharm. Valentine Okelu said Neimeth experienced a significant recovery in its operations, positioning as one of the fastest-growing pharmaceutical companies on Nigerian Exchanges Limited (NGX) in 2024. The full year reports and accounts show a strong growth outlook driven by fundamental improvements in our business. Our emphasis on cost efficiency and effective route-to-market strategies resulted in all-round operational enhancements., OKelu said.
Following on the steps of its performance in operations and profitability, Neimeth International Pharmaceuticals Plc’s share price saw a major rebound in 2024 as investors reassessed the company on the basis of emerging results. Underlying performance ratios, which measure the depth of structural improvement and intrinsic value creation, were all positive in 2024, underlining the fact that the actual figures were driven by substantial changes in the fundamentals of the company.