Neimeth Grows Sales by 86% to N1.21bn in Q1 2025

Kayode Tokede

Neimeth International Pharmaceuticals Plc has said that it recorded strong growth in sales and profitability in the first quarter, raising optimism that the company would achieve impressive performance in the 2025 business year.

Interim report and accounts of Neimeth for the three-month period ended March 31, 2025 released at the Nigerian Exchange (NGX) showed that turnover rose by 86 per cent from N648.26 million in first quarter 2024 to N1.21 billion in first quarter 2025.

Gross profit increased from N505.11 million to N639.72 million, a 27 per cent increase. Operating profit doubled by 114 per cent from N210.14 million in first quarter 2024 to N449.87 million in first quarter 2025.

Profit after tax rose from N77.65 million to N115.76 million, representing a 49 per cent increase. Earnings per share thus improved from 2.0 kobo to 3.0 kobo.

The balance sheet of the Company also improved considerably with total assets rising from N11.99 billion by December 31, 2024 to N12.41 billion by March 2025.

Shareholders’ funds rose from N1.65 billion in December 2024 to N1.77 billion by March 2025.

Managing Director/CEO, Neimeth International Pharmaceuticals., Pharm. J. Valentine Okelu, said the first quarter results showed the continuing growth in the company’s business amidst ongoing strategic initiatives aimed at boosting sales and cutting costs.

He said the Company remains focused on implementing its five-year strategic plan, which is aimed to consolidate the Company’s operations as a dominant brand out of Africa.

“We remain focused on our 2025-2029 strategic growth plan. The first quarter 2025 results lay out our path towards substantial growth in revenue and profit. We will pursue these strategic goals with vigour, building strong partnerships and leveraging market opportunities to drive sustainable expansion,” Okelu said.

He assured that the Company is making concerted efforts to create value for its shareholders, stakeholders, and the broader healthcare industry.

Earlier in the year, Okelu had unfolded the Company’s five-year growth plan aimed at boosting sales and reducing cost.“Our emphasis on cost efficiency and effective route-to-market strategies has resulted in all-round operational enhancements,” Okelu, who took over the management of the company in August 2023 said.

He said the Company is aggressively restructuring its foreign currency-denominated loans, converting them into naira to shield it 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,” Okelu said.He explained that the Company is actively pursuing market expansion as a crucial component of its diversification strategy with a view to reinforcing resilience and long-term sustainability.“We recently completed the long-planned upgrade of our manufacturing facility in Oregun, Lagos, which was originally established in 1976. This upgrade aligns with Good Manufacturing Practices (GMP) and enhances our cGMP compliance. We are also embarking on capacity upgrade of the plant to improve its manufacturing capacity” he said.

He added that Neimeth recognises the critical role of research and development (R&D) in driving innovation and maintaining market leadership, and thus remains committed to the whole chain of local capacity development including product formulation, manufacturing, and distribution. He noted that the Company’s vision of being “the leading innovative healthcare provider out of Africa” strengthens its resolve to develop high-quality medicines tailored to Africa’s unique health challenges.

“We have made substantial investments in R&D, focusing on internal innovations through formulation of new products and enhancement of existing formulations to improve efficacy and accessibility. Focus has also been placed on external collaborations through partnerships with medical and pharmaceutical researchers to develop new products, particularly those leveraging indigenous raw materials to address neglected disease areas at affordablee costs, and  import substitution initiatives, by reducing dependent on imported manufacturing inputs  and localizing production capabilities and resourcing,” Okelu said.