3 months ago
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Neimeth International Pharmaceuticals Plc grew its post-tax profit by 144 per cent to N198.2m in the first half of 2024.
Gross profit rose by 211 per cent to N933.9m, from N300.6m in H1 2023, attributed to production processes and economies of scale.
The company’s turnover for the half-year ended June 30, surged by 73 per cent to N1.66bn, compared to N957.4m in H1 2023, driven by increased sales volumes and effective pricing strategies across its product lines.
Cost of sales increased by 10 per cent to N722.8m, from N656.8m in the first half of the prior year.
Other income for Neimeth declined by nine per cent to N83.3m, from N91.4m in the previous year, on the back of lower non-core income sources.
The pharmaceutical firm cut marketing and distribution expenses by 42 per cent to N263.9m and administrative expenses by 10 per cent to N261.7m.
Finance costs for the half-year almost doubled, increasing by 138 per cent to N293.4m, up from N123.2m in H1 2023. This increase was mainly due to higher interest rates on borrowings and increased financing activities.
Despite the rise in finance costs, Neimeth’s operating profit for H1 rebounded by 142 per cent to N198.2m, from a loss of N475.4m in the same period last year.
Earnings per share for the half-year improved, reaching five kobo, up from a loss of 11 kobo in H1 2023.
The firm’s total assets increased to N9.56bn in H1 2024, compared to N8.94bn at the end of 2023, underpinned by higher inventories and receivables, reflecting increased business activities.
Liabilities also rose to N7.90bn, up from N7.47bn as of December 31, 2023, due to higher trade payables and borrowings to support business expansion.
The company stated that it was facing several ongoing legal disputes that came up during regular business operations.
Based on the response from the company’s attorneys, the contingent liabilities about ongoing lawsuits were N53m as of June 30.
“The company is subject to various pending litigations arising in the normal course of business. The contingent liabilities in respect of pending litigations based on the response received from the company’s solicitors was N53,634,102 as of June 30, 2024 (2021: N153,638,102). In the opinion of the Directors and based on the response obtained from the legal adviser, the company thinks that no payment will be made in respect of pending litigations,” the firm added.
The Chairman of Neimeth, Ambrosie Orjioko, told shareholders during the firm’s 65th annual general meeting in June that it was embarking on strategic expansion plans, focusing on its Oregun plant in Lagos State and investing in youth employment.
