Neimeth records 102% revenue growth

Neimeth International Pharmaceuticals Plc has reported a 102 per cent surge in revenue, rising from N2.2bn in 2023 to N4.5bn in 2024.

The Managing Director and Chief Executive Officer of Neimeth, Valentine Okelu, disclosed this at a media parley on Thursday, where he provided insights into the company’s financial performance and strategic direction.

According to him, the pharmaceutical firm recorded a 170 per cent increase in gross profit and successfully reversed a negative bottom line from 2023, posting an operating profit of N338.5m in 2024, an improvement of 126 per cent from the N1.3bn loss incurred the previous year.

“Our focus on cost efficiency and an effective route-to-market strategy has resulted in all-around operational enhancements,” Okelu stated.

Despite the revenue growth, Neimeth suffered a foreign exchange loss of N2.03bn in 2024, leading to a pre-tax loss of N1.69bn for the year.

To mitigate this challenge, Okelu said the company is restructuring its foreign-denominated loans, converting them into naira to shield its financials from further forex volatility.

“We are also negotiating extended payment terms on outstanding facilities to create financial headroom for a swift return to positive cash flow and profitability,” he added.

Additionally, Neimeth recorded cost reductions across various expense lines in 2024. Marketing and distribution expenses declined from N792.3m in 2023 to N578.7m, while administrative expenses dropped from N868.1m to N558.0m.

However, finance costs rose by 15 per cent, from N667.9m to N770.8m.

Also, the company is executing an expansion strategy, which includes upgrading its existing Oregun manufacturing plant in Lagos and constructing a new WHO-compliant production facility in Amawbia, Anambra State.

“Our expansion programme is in line with our vision to be the leading innovative healthcare provider out of Africa. We will continue to invest in research and development, product diversification, and strategic market penetration,” Okelu said.

Neimeth has outlined a five-year strategic plan aimed at strengthening market leadership, increasing profitability, and resuming dividend payments.

Okelu reiterated the company’s commitment to local production, reducing dependence on imported raw materials, and leveraging the African Continental Free Trade Agreement to expand its footprint across Africa.

“We remain committed to creating value for our shareholders, stakeholders, and the broader healthcare industry. With strategic investments maturing, we are poised to return to profitability and resume dividend payments in the near future,” he stated.

The PUNCH reported that increased sales drove the revenue of Neimeth International Pharmaceuticals Plc to a 105 per cent growth in the nine months ended September 30, 2024.