The increase in the cost of sales, administrative expenses, marketing, and distribution pushed Neimeth to a loss of N109.6 million in the nine-month of this year, BusinessDay has learned.
According to findings, the firm saw a dip to N109.6 million from a profit after tax of N270.5 million in the nine months of 2021.
Cost of sales maintained the same amount of N1.6 billion year on year, however, the cost of sales consumed 59 percent of the revenue in the nine months of 2022.
The other costs incurred by Neimeth on administrative expenses, marketing, and distribution expenses also increased year on year.
Administrative expenses increased by 9.7 percent to N564.2 million in the nine months of 2022 from N514 million in the same period of last year.
Marketing and distribution expenses rose by just 1 percent to N587.3 million in the nine months of 2022 from N579.7 million in the nine months of 2021.
Neimeth turnover dropped 11 percent to N2.7 billion in the nine months of 2022 from N3.04 billion in the nine months of 2021.
Exchange gain stood at N96.8 million from an exchange loss of N93,000 in the comparable periods.
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Net cash from operating activities recorded a negative of N61.7 million in September 2022 from a positive of N346 million in September 2021.
Net cash used in investing activities stood at a negative cash flow of N1.14 billion from N339.2 million negative cash flow in the period reviewed.
Net cash used in financing activities recorded N3.58 million in September 2022 from a negative N640 million in September 2021.
Neimeth’s employee costs climbed 18.5 percent to N243.4 million in September 2022 from N205.3 million in September 2021.
Corporate expenses, however, dropped 64 percent to N4.58 million from N12.7 million in September 2021.
Inventories stood at N1.73 billion in September 2022, an 18.5 percent increase from N1.46 billion in September 2021.
Trade and other receivables dipped just 0.7 percent to N1.26 billion in September 2022 from N1.27 billion in September 2021.
The average number of persons employed which includes management, senior and junior staff increased by 90.5 percent to 202 in September 2022 from 106 in September 2021.
Cash and cash equivalents as of the period ended September 2022 dropped 59.7 percent to N810.4 million, coming from N2.01 billion in September 2021.
Neimeth International Pharmaceuticals PLC is a publicly listed pharmaceutical company founded in 1997 and headquartered in Lagos. It was established by a former managing director of Pfizer Products of Nigeria to acquire some of the trading assets of Pfizer International in Nigeria.
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