Neimeth’s Share Price Rises 102% as Investors React to 939% Profit Growth

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Goddy Egene

Neimeth International Pharmaceuticals Plc yesterday maintained its lead on the price gainers’ table at the stock market as investors continued to swoop on the equity. The stock has thus, recorded a gain of 101.8 per cent in two weeks since the company announced its half year results ended March 31, 2020.

Interim report and accounts of Neimeth showed significant growths across key performance indicators with growing sales and operating efficiency driving operating profit by 225.28 per cent.

Specifically, turnover grew by 19.4 per cent to N1.165 billion in 2020 compared with N975.98 million recorded in 2019. The company recorded growth across its two business segments of pharmaceuticals 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.

Profit after tax soared by 939 per cent from N5.447 million to N56.596 million in 2020.

Neimeth’s share price, which opened this year at N0.62 per share has soared to N2.57 as at yesterday, showing an increase of 315 per cent year-to-date.

The price appreciation has been attributed to the 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 and primed the company for dividend payment from net profit.

The Managing Director, Neimeth International Pharmaceuticals Plc, Matthew Azoji, had said the half-year 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.

According to him, the strategic direction for 2020-2024 would see the company implementing bold and gradual expansion initiatives including the upgrade of its factory at Oregun, Lagos state; development of new manufacturing facilities and expansion of the company’s marketing drive to Sub-Saharan Africa.

“Our results show that we are on course to achieving our strategic growth objectives. We remain committed to our goal of repositioning the company to play greater roles in the healthcare industry, deliver better returns on investment to shareholders and greater benefits to all other stakeholders,” Azoji said.