Jostling for more cash, drugmakers grow liquidity by 89%

In a bid to have more liquid assets to pay off current liabilities, Nigeria’s largest publicly listed drugmakers have recorded an 89 percent increase in total cash and cash equivalents reported in the first quarter of 2023.

Data sourced from the Nigerian Exchange Group showed that Nigerian drug makers’ cash and cash equivalents stood at N33.12 billion in the first quarter of 2023, an 89 percent increase from N17.55 billion in the first quarter of 2022.

Further findings showed GlaxoSmithKline recorded the highest cash and cash equivalents of N22.78 billion, followed by May & Baker (N4.11 billion), Neimeth (N3.30 billion), Fidson (N1.98 billion) and Morison Industries (N0.95 billion).

Cash equivalents are investment securities that are meant for short-term investing; they have high credit quality and are highly liquid.

Here is a breakdown of what our companies performed

GlaxoSmithKline

GlaxoSmithKline’s cash and cash equivalents stood at N22.78 billion in the first quarter of 2023, up 102 percent from N11.29 billion in the first quarter of 2022.

The movement in cash and cash equivalents shows net cash generated by operating activities which stood at N2.66 billion in the first quarter of 2023 from a negative of N1.48 billion in the first quarter of 2022.

Net cash flows generated investing activities arrived at N177.02 million, 561 percent from N26.79 million in the reviewed period.

The firm’s net cash flows used in financing activities stood at N43.41 million from N1.5 million negative cash flow year on year.

May & Baker

May & Baker’s cash and cash equivalent stood at N4.11 billion in the first quarter of 2023, up 61.2 percent from N2.55 billion in the first quarter of 2022.

The movement in cash and cash equivalent reveals that net cash from operating activities rose to N1.51 billion in the first quarter 0f 2023, a 946 percent increase from N144.37 million in the first quarter of 2022.

Net cash used in investing activities stood at N193.27 million from N151.59 million year-on-year negative cash flow.

The firm’s net cash used in financing activities amounted to N85.29 million from N196.6 million negative cash flow year on year.

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Neimeth

Neimeth’s cash and cash equivalent arrived at N3.3 billion in the first quarter of 2023, up 90.8 percent from N1.73 billion in the first quarter of 2022.

The movement in cash and cash equivalents reveals that net cash from operating activities arrived at a negative cash flow of N354.8 million from N265.68 million negative cash flow in the period reviewed.

Net cash used in investing activities stood at N60.7 million from N182.64 million negative cash flows year on year.

The firm’s net cash from financing activities rose to N3.26 billion, up 1920 percent from N161.38 million in the comparable period.

Fidson Healthcare

Fidson Healthcare’s cash and cash equivalents grew marginally by 1 percent to N1.98 billion in the first quarter of 2023 from N1.96 billion in the first quarter of 2022.

The movement in cash and cash equivalents reveals net cash flow from operating activities arrived at a positive of N292.3 million from negative of N738.3 million in the period reviewed.

Net cash utilised by investing activities stood at a positive of N897.17 million from the negative of N919.44 million in the comparable period.

The firm’s net cash from financing activities to a negative of N1.14 billion from a positive of N1.94 billion in the reviewed period.

Morison Industries

Morison Industries’ cash and cash equivalent dipped 39 percent to N9.54 million in the first quarter of 2023 from 15.7 million in the first quarter of 2022.

The movement in cash and cash equivalents reveals net cash from operating activities stood at negative N13.01 million from N2.36 million in the comparable period.

The firm’s net cash used in investing activities grew slightly by 0.5 percent to N7.96 million in the first quarter of 2023 from N7.92 million in the first quarter of 2022.

Morison Industries recorded no figure for net cash from financing activities during the period reviewed.