Neimeth International Pharmaceuticals Plc’s post-tax profit soared by 144 percent to N198.2m in the first half of 2024.
The gross profit climbed by 211 percent to N933.9m, up from N300.6m in H1 2023, thanks to improved production processes and economies of scale.
For the half-year ending June 30, the company’s turnover surged by 73 percent to N1.66bn, a significant increase from N957.4m in H1 2023, propelled by higher sales volumes and effective pricing strategies across its product lines.
The cost of sales saw a 10 percent rise to N722.8m, compared to N656.8m in the first half of the previous year.
Neimeth’s other income decreased by nine percent to N83.3m, down from N91.4m last year, due to a reduction in non-core income sources.
The company reduced marketing and distribution expenses by 42 percent to N263.9m and trimmed administrative expenses by 10 percent to N261.7m.
Finance costs for the half-year nearly doubled, with a 138 percent increase to N293.4m, from N123.2m in H1 2023, primarily due to higher interest rates on borrowings and expanded financing activities.
Despite the spike in finance costs, Neimeth’s operating profit for H1 2024 rebounded by 142 percent to N198.2m, recovering from a loss of N475.4m in the same period the previous year.
Earnings per share for the half-year turned positive, reaching five kobo, a reversal from a loss of 11 kobo in H1 2023.
The firm’s total assets grew to N9.56bn in H1 2024, up from N8.94bn at the end of 2023, bolstered by increased inventories and receivables, indicative of heightened business activities.
Liabilities also increased to N7.90bn, from N7.47bn as of December 31, 2023, due to elevated trade payables and borrowings for business expansion.
The company acknowledged facing several ongoing legal disputes arising from regular business operations.
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.
As per the company’s attorneys, the contingent liabilities related to ongoing lawsuits amounted to N53m as of June 30. “The company is subject to various pen
