Neimeth International Pharmaceuticals Plc has reported N2.99bn from the sale of pharmaceutical products in the third quarter of 2024.
The increase in sales is largely driven by inflationary pressures and the depreciation of the Naira, which have resulted in a significant rise in the prices of pharmaceutical products across Nigeria.
According to the company’s unaudited nine-month financial results, tracked by NewsNGR, these pharmaceutical sales accounted for 96.51 per cent of Neimeth’s total revenue of N3.094bn during the period.
In addition to its core pharmaceutical sales, Neimeth also generated N107.56m from the sale of animal health products, contributing to its overall revenue performance for the quarter.
A cursory look at the financials showed Neimeth International rode on the back of a double in sales and increased operating efficiency to achieve a 105 per cent revenue growth in the nine months ended September 30, 2024.
Interim report and accounts of Neimeth for the nine-month period released at the Nigerian Exchange (NGX) showed that total sales doubled from N1.51bn at the end of third quarter 2023 to N3.09bn at the end of third quarter 2024.
Gross profit margin increased from 38.6 per cent in third quarter 2023 to 46.9 per cent in third quarter 2024, underlining the company’s prudent top-line management.
With this, gross profit for the nine months jumped by 149 per cent to N1.45bn in 2024 as against N583.26m in 2023. The company reversed its negative bottom-line in 2023 with operating profit of N310.49m million in 2024, compared with operating loss of N575.27m for the same period in 2023.
With this, earnings per share recovered from a loss of 13 kobo in 2023 to a positive 7.0 kobo in 2024.
Operating profit margin stood at 10.02 per cent by third quarter 2024 from -38.06 per cent by third quarter 2023. Where the company was making an average loss of N37.86 on every N100 unit of sales in the previous year, the company made a profit of N10.02 on every similar unit of sales in 2024. Pre-tax profit margin stood at 10.02 per cent and -37.86 per cent in 2024 and 2023 respectively.
Managing Director, Neimeth International Pharmaceuticals Plc, Pharm Valentine Okelu, said the performance showed the success of ongoing strategic initiatives aimed at solidifying the company’s position as a leading healthcare provider in Africa.
He said the top-line performance indicated that Neimeth is not only growing its production capacity, but also effectively gaining more customers and market share.
He said the recent facility upgrade at its Oregun, Lagos factory has substantially increased installed capacity, giving the company significant headroom to drive sales.
“We are growing the business and we are quite managing costs so well, despite the inflationary pressures and other challenges in the larger economy. We are confident we will be able to hit our targets and create sustainable values for our shareholders,” Okelu said.
He assured shareholders and other stakeholders that the company remains committed to product innovation, research and development while building enduring values for all stakeholders.