Neimeth Excites Shareholders with N114 Million Dividend Payment

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Goddy Egene

Neimeth International Pharmaceuticals Plc has resumed the payment of dividend following improved results posted for the year ended September 30, 2020. Shareholders of the company did not receive dividend for some years due to poor performance. However, the board of directors has recommended a dividend of N114 million that translates to 6.5 kobo per share.

The audited report and accounts of Neimeth International Pharmaceuticals for showed that turnover rose by 20 per cent to N2.84 billion in 2020 as against N2.37 billion recorded in the comparable period of 2019. 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. Hence, the board recommended payment of a dividend of 6.5 kobo for the 2020 business year, signaling the return of the healthcare company to annual dividend payment.

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.

Commenting, the Managing Director, Neimeth International Pharmaceuticals Plc, 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.

On the outlook, the MD said the company would implement major expansionary initiatives including upgrade of existing factory 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.

He said while many of the company’s products have been helpful as safeguards against the ravaging COVID-19 pandemic, Neimeth would 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.