By Chinwendu Obienyi
Neimeth International Pharmaceuticals Plc, says it has witnessed significant growth in the top-line in 2020, giving the healthcare company a strong basis to declare its first dividend in nearly a decade.
According to the company’s audited report and accounts for the year ended September 30, 2020, its turnover rose by 20 per cent to N2.84 billion in 2020 as against N2.37 billion recorded in the same period of 2019 while the company’s gross profit rose by 26.9 per cent from N1.19 billion in 2019 to N1.51 billion in 2020.
Despite the tough operating environment due to the COVID-19 pandemic and industry-specific challenges, the company sustained considerable bottom-line with profit before tax of N297.39 million compared to prior year figure of N304.44 million. After taxes, net profit stood at N212.48 million, implying earnings per share of 11 kobo per share. The balance sheet of the company also emerged stronger with total assets rising by 134.2 per cent from N2.75 billion in 2019 to N6.44 billion in 2020. Shareholders’ funds grew by 18.7 per cent from N1.07 billion in 2019 to N1.27 billion in 2020.
The Board of Directors of the company also recommended payment of a dividend of 6.5 kobo on every 50 kobo share for the 2020 business year, signaling the return of the healthcare company to annual dividend payment.
Commenting on the results, the Managing Director, Neimeth International Pharmaceuticals Plc, Pharm. Matthew Azoji, said the growth in sales underscored the increasing market penetration and acceptance of the company’s brands by customers.
He said the 2020 performance showed continuing success of the company’s medium-term strategic growth plan as it strives to open additional markets while consolidating its major domestic market.
“Our results show that we are on the right track. We are growing our domestic market and opening up the export market, giving us much-needed diversification and resilience to sustain growth in spite of the numerous challenges during the period,” Azoji said.
According to him, the latest results show the resilience of the company and reassure on the sustainability of its business plan.
He noted that while margins were slightly impacted by headwinds, the healthy bottom-line recorded in 2020 showed the commitment of the company to optimise value for its shareholders.
On the outlook, Azoji said the company would implement major expansionary initiatives including the upgrade of existing factories and development of new manufacturing facilities in line with the overall strategy to become the manufacturing hub for pharmaceuticals and healthcare products in Sub-Saharan Africa.
Azoji said while many of the company’s products have been helpful as safeguards against the ravaging COVID-19 pandemic, Neimeth will continue to prioritise investments in research and development in its quest to develop domestic healthcare capacity and increase local content in national drug development and use.