MeCure industries

BREAKING: MeCure reports 38% rise in revenues as cost mute profit growth  

MeCure Industries PLC released its 2024 second-quarter results, reporting a pre-tax profit of N1.33 billion.

This represents a 0.95% year-over-year rise from a pre-tax profit of N1.32 billion reported in 2023.

The company’s revenue climbed by 38.61% year-over-year from N12.3 billion reported the previous year to N17.1 billion in the second quarter of 2024.

However, the earnings per share recorded in Q2 of 2024 fell by 14.81% from N0.27 reported the previous year.

Key highlights: 

Revenue:                                                           N17.1 billion, 38.61% YoY

Cost of sales:                                                    N11.4 billion, 41.38% YoY

Gross profit:                                                      N5.6 billion, 33.36% YoY

Pre-tax profit:                                                    N1.3 billion, 0.95% YoY

Finance cost:                                                      N1.5 billion,49.10% YoY

EPS:                                                                      N0.23, -14.81% YoY

Commentary:

The company experienced increased sales of its pharmaceutical products as revenue surged to N17.1 billion in Q2 of 2024.

This represents a 38.61% year-over-year increase from N12.3 billion recorded the previous year.

  • Recently, the company launched the production of a new beta-lactam drug, Amoxyclav 625 mg, in the first quarter of 2024, following the departure of other pharmaceutical companies that manufactured similar variants.
  • Production commenced in the first quarter of 2024, and on April 30th, the company obtained the approval of NAFDAC to use local raw materials for Amoxyclav’s production.

MeCure’s revenue increase influenced a rise in gross profit by 33.36% YoY compared to the previous year, despite a spike in the cost of sales by 41.38% YoY in Q2 of 2024.

Hence, pre-tax profit slightly increased by 0.95% year-over-year from N1.32 billion recorded in the second quarter of 2023 to N1.33 billion in Q2 of 2024.

In the report, the earnings per share of the company from issued common stocks fell by 14.81% YoY from N0.27 reported the previous year to N0.23 in Q2 of 2024, as finance costs spiked by 49.10% YoY.

The stock is trading at a price of N7.75 per share on the Nigerian stock market.


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