Neimeth International Pharmaceuticals Plc continued its impressive growth trajectory in the third quarter as double-digit growth in sales and improving operational efficiency leapfrogged profit by 664.8 per cent during the nine-month period.
Interim report and accounts of Neimeth for the nine-month period ended June 30, 2020, released at the Nigerian Stock Exchange (NSE) showed that turnover rose by 42.6 per cent, providing the linchpin for gross profit and operating profit to rise by 70.3 per cent and 247.16 per cent respectively. Net profit thus grew by 664.8 per cent. Earnings per share jumped by 550 per cent, underscoring the strong potential for increased dividend payment for the current business year.
The report showed impressive growths across all business segments as increased market share in Nigeria was further boosted by the resumption of export sales. For instance, the veterinary business jumped by over 300 per cent from N82 million in full year2019 to N317 million in nine months of 2020.
Turnover rose to N2.01 billion in third-quarter 2020 as against N1.41 billion recorded in the comparable period of 2019. Gross profit crossed the landmark of a billion naira to N1.10 billion by June 2020 compared with N646.05 million posted by June 2019. Operating profit more than tripled from N117.06 million to N406.38 million. Profit after tax leapt to N237.63 million by June 2020 as against N31.07 million recorded in the corresponding period of 2019.
The report indicated earnings per share of 13 kobo for the nine-month period ended June 30, 2020, compared with 2.0 kobo in the comparable period of 2019. The substantial increase in distributable earnings places Neimeth in good stead for dividend payment, after shareholders at their annual general meeting in March 2020 approved a balance sheet restructuring that is expected to wipe out accumulated losses and prime the company for dividend payment from net profit.
The balance sheet of the healthcare company also emerged stronger. Total assets rose by 124.7 per cent to N6.18 billion by June 2020 as against N2.75 billion recorded by the year ended September 30, 2019. Total equity also increased by 21.5 per cent from N1.07 billion to N1.3 billion.
Managing Director/CEO, Neimeth International Pharmaceuticals Plc, Pharm Matthew Azoji, said the well-rounded growth in the period under review showed that the company’s growth strategies are resilient and have continued to gain traction.
According to him, the third-quarter results lent credence to improving positive impact from the company’s medium-term strategic growth plan as it strives to open additional markets while consolidating its major domestic market.
These nine-month results are clear indications of the directions we want to go. We are growing our domestic market while opening up the export market, giving us the top-line diversification that we need to sustain growth despite the vagaries. Improving margins across our major business lines of pharmaceuticals and animal health are pointers to the general operating efficiency as we seek the best blend of strategies to grow our business as well as shareholders value, Azoji said.