Neimeth records 102% revenue surge

Neimeth International Pharmaceuticals Plc has said it is now on a growth trajectory with its 2024 financial performance with revenue surging by 102%, rising from N2.2 billion in 2023 to N4.5 billion in 2024.

This is just as the company is seeking patient capital – the money invested in organisations involved in healthcare and other life-saving ventures – to make medications affordable.

The Managing Director/Chief Executive Officer of the company, Valentine Chinedu Okelu, during a press briefing in Lagos, decried the high cost of doing business in Nigeria with high interest rates and naira depreciation, among others.

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Despite the headwinds, Okelu expressed delight with the performance of the company, saying it would soon begin dividends payment.

According to its unaudited 2024 results, the company recorded a gross profit growth of 170%, reversing a negative bottom line from 2023 with an operating profit of N338.5 million, a 126% improvement over the N1.3 billion loss incurred in the previous year.

“This represents an absolute profit improvement of N1.638 billion,” he said.

In terms of cost efficiency, the MD disclosed that marketing and distribution expenses were reduced from N792.3 million in 2023 to N578.7 million in 2024 while administrative expenses also declined from N868.1 million to N558.0 million.

Similarly, finance costs saw a moderate increase from N667.9 million to N770.8 million—a 15% rise despite the 102% revenue growth.

“However, despite these remarkable achievements, we encountered a significant foreign exchange loss amounting to N2.03 billion, leading to a pre-tax loss of N1.69 billion for the year,” he said.

Okelu added that to mitigate this challenge, “we are aggressively restructuring our foreign-denominated loans, converting them into naira to shield us from further forex volatility.”

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

As part of measures to reduce the FX loss, he disclosed that the company is taking measures to reduce dependency on imported manufacturing inputs by “localizing production capabilities and resourcing.”

The company, the MD also stated, has outlined a five-year projection – from 2025 to 2029 – hinged on “a path toward substantial revenue and profit growth.”

“With strategic investments maturing, we are poised to return to profitability and resume dividend payments in the near future.

“Our new strategic direction is to establish Neimeth as a recognised international brand within Sub-Saharan Africa. We will pursue this ambition with vigour, building strong partnerships and leveraging market opportunities to drive sustainable expansion,” he added.