Improved Results, Bonus Shares Excite Neimeth Shareholders

Shareholders of Neimeth International Pharmaceuticals Plc have commended the board and management on the performance recorded by the company for the year ended September 30, 2018 despite the challenging environment.

The shareholders, who gave the commendation at the annual general meeting (AGM) held in Lagos, on Wednesday, were pleased with the bonus shares recommended by the board.

Neimeth posted a revenue of N2.269 billion for the year ended September 30, 2018, up from N1.534 billion in 2017.Cost of sale jumped from N604.670 million to N1.107 billion, while gross profit stood at N1.161 billion in 2018, as against N929 million in 2017.

Its finance cost fell from N84 million to N76 million. The company ended the year with a profit before tax (PBT) of N202 million compared with a loss before tax of N404 million. It also posted profit after tax of N184 million in 2018, which is a recovery from a loss of N411 million in 2017.

Addressing the shareholders, Chairman of Neimeth, Dr. ABC Orjiako in recognition of the forbearance shown by shareholders all the years without profit, the board has recommended for your approval a script of one ordinary share for every 10 held.

According to him, in 2016/17 financial year the company was challenged by adversity when fire gutted its raw materials warehouse on 7th March 2017.

“In one single year, 2017/18, we were able to overcome the crippling incident and are ready to resume our march forward. Your Board has restarted implementation of its management reset that commenced with the hiring of our former Managing Director three years ago. Her departure and the fire incident put a temporary halt to the execution of the comprehensive reset that would presage our growth strategy. We have completed the process leading to the engagement of a new MD/CEO who would join the company in the second quarter of this 2018/19 financial year. Other changes at the senior management level are in the works and would be completed soonest. These changes are meant to drive the vigorous expansion program and growth your Board has harboured a while now. Our vision encompass increased import circumference as well as enhanced domestic manufacturing of our flagship brands,” he said.

He attributed the improved performance to board, management, staff and other stakeholders.