The shareholders of Neimeth international pharmaceuticals PLC at the company’s 60th annual general meeting applauded the board and management for its efforts made in returning the company to profitability.
The drug maker came out of the woods, reporting a Profit After Tax of N184 million in its full-year 2018 after a loss of N411.5 million, the same period a year before.
Similarly, turnover for the firm increased by 48 percent from N1.53 billion in 2017 to N2.27 billion as at end of 208 while PBT, which is a metrics used to ascertain how profitable a firm is stood at N202.5 million, bouncing from a loss of N404.9 million in the previous year when the sector was faced with acute dollar shortages since most of their raw materials were largely imported.
“I wish to express gratitude to all members of the management team and the general staff that demonstrated resoluteness during the difficult year following a fire accident”, A.B.C Orjiako, chairman, a board of directors for Neimeth said.
Revenue from its Pharmaceutical segment surged from ₦1.5 billion in 2017 to ₦2.24 billion in 2018, while revenue from its Animal health plummeted from ₦35 million in 2017 to ₦28 million in 2018.
The firm has recommended a bonus issue of 1 new share for every 10 shares already held. Qualification date for the bonus shares is Thursday, 17th January 2019.
The firm with a market cap of N1.310 billion has a one year return of -15.67 per cent, according to data compiled by Business day. Its share price is currently trading at N0.69 at the end of the trading session on Monday.
The 2016/2017 financial year of the firm was challenged by adversity when fire gutted the raw materials warehouse on 7th March 2017. However; the company was able to overcome the crippling incident
Its turnover fell from ₦2 billion in 2016 to ₦1.5 billion in 2017, while Gross profit fell from ₦1.2 billion in 2016 to N929 million in 2017. The company also recorded a Loss before Tax of ₦404 million, compared to a Profit before Tax of ₦95 million in 2017.
Pharmaceutical companies, like other manufacturers, had a challenging working environment in the last two years. Activities of cheap imports from Asian countries and the influx of adulterated drugs impacted on their profitability.
A foreign exchange crisis that only abated in 2017 meant that access to foreign exchange to buy raw materials was difficult. Where available, it threw spanners into most projections.
These factors left Neimeth struggling, although other players such as May and Baker and Fidson seem to have kept their heads above water. One could say the company clearly suffered a horrible year in 2017.
MICHEAL ANI
