Shareholders of Neimeth International Pharmaceuticals Plc has approved a dividend of seven kobo for every 50 kobo share held of the company, an eight per cent increase over the 6.5 kobo paid by the company last year.
This marks the second consecutive payment of dividends by the healthcare company after over a decade of non-payment of dividends to shareholders.
At the Annual General Meeting of the company held recently, the shareholders approved the dividends with words of gratitude to the board and management for keeping their promise on the sustenance and increase in dividends.
Speaking at the Annual General Meeting in Lagos, the Chairman of the Board of Directors, Dr Ambrosie Orjiako, said the plan of the Board is to effectively end the era of losses and non-payment of dividends. He assured the shareholders that the Board will work with the management to continue to improve on returns to shareholders.
In the 2021 business year, the turnover of the company grew 7 per cent while profit before tax grew 23 per cent. Profit After Tax did even better with a 27 per cent rise against 2020.
Neimeth has emerged from an era of constant losses to a period of steady growth. In the past three years, the company has built a regime of growth and profitability.
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In the 2018/2019 and 2019/2020 business years the company recorded growth in both turnover and profit after ten years of lull.
Following the same growth trajectory, the share price of Neimeth increased from 40 kobos as of September 30, 2019, to N1.85 as of September 30, 2020, a 365 per cent growth By September 30, 2021, the Neimeth stock sold at N1.75 representing a 330 per cent growth over the 2019 position. By March 11, 2021, Neimeth share price stood at N1.77 a 343 per cent growth over the 2019 position. The implication of this is that a shareholder who held N1 million stock of Neimeth by September 30, 2019, was by March 11 worth over N4. 43 million.
Between 2012 and 2021 the Earnings Per Share of Neimeth grew 280 per cent from negative 5kobo to 14 kobo per share. The ability of the company to create wealth for shareholders has been applauded by industry and market watchers and regulators.
Reassuring shareholders on the future prospects of the company, Mr Azoji said Neimeth is carrying out a facility upgrade of its Oregun, Lagos factory which he said would be completed during the current business year. He said when this is done it would add 300 per cent to the company’s manufacturing capacity. He said this would boost the turnover and profits of the company in the immediate future.
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Neimeth shareholders applaud consistent dividends payment
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