Neimeth grows full-year profit by 27%

Neimeth International Pharmaceuticals Plc has declared an after tax profit of N271million for the 2021 business, representing a 27 percent rise over the prior year (2020) figure of N212.47 million. The pre- tax profit of the company rose 23 percent at N365.25 million over the 2020 figure of N297.38 million. This result was achieved on a modest turnover rise of 7 percent from N2.84 billion . in 2020 to N3.05 billion in 2021.

Matthew Azoji, Managing Director/CEO, Neimeth International Pharmaceuticals Plc said this was achieved through prudent management of resources. ‘”We were able to rein in costs, eliminate waste and eke out income to increase the margin of profit,” Azoji said at the 63rd Annual General Meeting of the Company held Tuesday.

Following this profit, the Company has declared a dividend of 7 Kobo for every 50 Kobo share held of the Company, an 8 per cent increase over the figure of 6.5 Kobo paid last year.

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The fortunes of Neimeth has taken an upward turn since 2018 when it returned to profitablity after nearly a decade of predominantly losses. From a loss of N404.9 million in 2017 the company made profit of N166.4 million in 2018, N304.4 million in 2019, N297.3 million in 2020 at the upsurge of COVID pandemic and N365.2 million in 2021.

Ambrosie B. C. Orjiako, Chairman of the Board of Neimeth told shareholders at the AGM that the Board is working with Management to ensure that the growth trajectory is sustained

In the past three years the company has built a regime of growth in revenue and profits after ten years of lull. Azoji said the Company is taking a quantum leap in the 2022 business as it plans to increase capacity by 300 percent. This will be the outcome of an ongoing facility upgrade at it’s Oregun, Lagos factory, he said. Speaking to shareholders at the AGM , Azoji said the capacity upgrade would increase the turnover and profits of Neimeth.

Last year the company announced a two-pronged expansion programme – to build a new manufacturing plant at Amawbia in Anambra State and a facility upgrade of its Oregun plant. The facility upgrade is now nearing completion while work at the new plant is expected to get to an advanced stage by the end of this year, according to Azoji.