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Neimeth Pharmaceuticals records N182m profit

Neimeth International Pharmaceuticals Plc recorded a profit before tax of N182m per cent increase in its profit before tax for the year ended September 30, 2013, the company reported.

The company’s result for the period, which was posted on the Nigerian Stock Exchange’s website, showed the company’s profit before tax in the period under review represented a 350 per cent rise from the N52m loss before tax it reported in the corresponding period.

The company’s profit after tax was also up, rising by 327% to N130.6m, up from a loss after tax of N39.9m in the year ended September 30, 2012.

Similarly, Neimeth Pharmaceuticals saw its revenue rise by 30 per cent from N1.553bn in the year ended September 30, 2012 to N2.017bn in 2013.

A statement by the Corporate Communications Manager, Neimeth Pharmaceuticals, Chinenye Okoronkwo, said the result showed that the management of the company had fulfilled its pledge to shareholders that it would return the business to profitability.

It said the pledge, which was made at the company’s Annual General Meeting in 2012, had yielded positive results.

It added, “In line with the company’s conscious determination to reduce overall operating cost by 25 per cent, administrative expenses recorded a six per cent reduction at N474m compared to N506m in 2012.

“With top line revenue of N2.017bn, cost of goods at N959m and cost of selling activities N416m, the company showed an impressive gross margin of N642m, a growth of 21 per cent over 2012’s  N529m (adjusted to 12 months).”

The company also said as a result of its new financial strategy, it was able to reduce finance cost to N56m, reflecting a reduction of 37 per cent over the N90m (adjusted to 12 months) incurred in 2012.

The pharmaceutical company expressed the confidence that it was on the path to recovery and sustained growth.

Neimeth Pharmaceuticals had in December assured its shareholders that its investment in research and development was bound to boost the company’s bottom line in the future.

The company, which has overtime introduced new drugs to the market based on studies by scientists in its research and development department, explained that while its investment in R&D was huge, it was the right thing to do in the interest of the company.

The Managing Director, Niemeth Pharmaceuticals, Mr. Emmanuel Ekunno, had said it would have been cheaper to produce drugs in countries like China where labour was cheap, but the company chose to produce in Nigeria in order to strengthen its brands, and contribute to the growth of the economy.

 Ekunno had explained that as a result of the originality of several of the drugs produced by the company, it was primed to become an exporter of drugs to other African countries and beyond.

This, he said, would not only help boost the company’s revenue, it would also put it among the top pharmaceutical companies globally.

Also, the Finance Director, Neimeth Pharmaceuticals, Mr. Chris Mmeje, stressed that serious companies must be willing to invest in R&D.

He said, “It is true that we are heavy on research. But as we say in investment and corporate finance, research is the bedrock of the future; not of today, it is the bedrock of the future. Any company that is heavy on research will in the final analysis own the future.”

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