Neimeth International Pharmaceuticals Plc has grown its bottom-line by 938.6 per cent even as increasing market share and cost management strategies lifted the healthcare company to its best performance in four years.
This came as investors trading on the floor of the Nigerian Stock Exchange (NSE) scrambled for Neimeth’s shares, triggering a demand-driven share price appreciation that has seen the stock posting a capital gain of 79.2 per cent in recent weeks coupled with the gain of 19.44 per cent on Friday.
The price appreciation might not be unconnected with increasing prospects of dividend payment in the current business year after shareholders of the company at their annual general meeting earlier in March 2020 approved a balance sheet restructuring that would see the write off of accumulated losses, priming the company for dividend payment from net profit.
According to the company’s interim report and accounts for the six-month period which ended March 31,2020, the pharmaceutical firm showed significant growth across key performance indicators with growing sales and operating efficiency driving operating profit by 225.28 per cent while its total turnover crossed a record N1 billion mark with 19.4 per cent growth to N1.165 billion by March 2020 compared with N975.98 million recorded in comparable period of March 2019.
The firm’s top-line growth was driven by increased sales in its domestic market. Furthermore, it recorded growth across its two business segments of pharmaceutical products and animal health products with the animal health products showing strong prospects for the top-line with 897.5 per cent growth during the period.
Commenting, the Managing Director of the company, Matthew Azoji, said the half-year (H1) results built on steady growth witnessed in recent periods and further demonstrated that Neimeth is firmly on an upward growth trajectory. He said the results showed early gains of the company’s five-year strategic plan noting that the company would vigorously expand and reposition its businesses to cement its position as a leading player in not only Nigeria’s healthcare industry but also in the wider West African region while simultaneously ensuring good returns on investment to shareholders.