Neimeth’s earnings up 9% despite rising cost pressures
Neimeth International Pharmaceuticals Plc recorded a modest 9 percent year-on-year rise in profit after tax to N339.77 million for the nine months ended September 2025, despite a steep increase in finance costs that weighed on operating margins.
The drugmaker’s profit after tax was supported by stronger sales and improved other income, which more than doubled during the period. Revenue for the nine months rose 62 percent to N5.01 billion, compared to N3.09 billion a year earlier, reflecting increased product demand and better market penetration.
Cost of sales grew 54 percent year-on-year to N2.52 billion, while gross profit surged 71 percent to N2.49 billion, up from N1.45 billion in the same period of 2024. Other income more than doubled to N312.35 million from N134.52 million, driven by non-core earnings and operational efficiencies.
The company’s finance costs rose sharply by 198 percent to N1.32 billion from N442.76 million last year, as higher borrowing costs and currency pressures impacted the bottom line. Administrative expenses increased to N701.45 million from N420.06 million, while marketing and distribution expenses were largely flat at N437.44 million.
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Operating profit stood at N1.66 billion, representing a 120 percent increase from N753.25 million in the prior year. Earnings per share inched up 9 percent to 7.95 kobo from 7.27 kobo.
Total assets grew 11.3 percent to N13.35 billion as of September 2025, from N11.99 billion at the end of December 2024. The company’s inventory nearly doubled to N3.99 billion from N1.87 billion, indicating improved production volumes ahead of projected market demand.
Total liabilities rose to N11.35 billion from N10.34 billion, largely due to higher short-term borrowings and trade payables. Shareholders’ funds, however, strengthened to N1.99 billion from N1.65 billion, reflecting retained earnings during the period.
Neimeth continues to navigate Nigeria’s challenging pharmaceutical environment marked by inflationary pressures and exchange rate volatility, while focusing on expanding its manufacturing base and sustaining operational efficiency.
