By Aduragbemi Omiyale
The board and management of Neimeth International Pharmaceuticals Plc have been praised for enhancing operations, promoting business continuity, and restoring investor confidence.
This commendation came from the Nigerian Exchange (NGX) Limited after the healthcare firm carried out a Facts Behind the Figures Presentation on Tuesday, June 11, 2024.
“We are delighted that Neimeth has chosen to use this forum to communicate its financial performance, strategic plans, and operational developments to the investment community.
“Given that accurate, accessible, and timely information is essential to stimulate market activity, your presence here today underscores your dedication to providing relevant information to the market.
“We anticipate that today’s interaction will be fruitful, encouraging transparency, price discovery, and ultimately, enhancing the overall performance of your stocks,” the acting chief executive of NGX, Mr Jude Chiemeka, stated at the event.
“Despite the prevailing economic challenges, NGX recognizes efforts of the board and management of Neimeth in enhancing operations, promoting business continuity, and restoring investor confidence,” he added.
Addressing participants, the chief executive of Neimeth, Mr Valentine Okelu, stated that the firm, after the divestment, developed new alliances to increase its product portfolio, established new business opportunities, and launched its brand of generic products to meet local healthcare needs, saying manufacturing of over 15 ethical and consumer products is done from its manufacturing plant in Oregun, Lagos State.
Mr Okelu noted that as of December 31, 2022, the organisation’s free float stood at 37 per cent, which was 17 per cent above the 20 per cent minimum requirement mandated by the NGX’s rule.
“However, in 2023, following the conclusion of the company’s rights issue exercise, an assessment of its free float showed that it had fallen to 17.78 per cent, bringing Neimeth below the NGX’s free float requirement of 20 per cent of its issued share capital,” he stated.
He explained further that “following Neimeth’s engagement with the NGX Regulation Limited, a two-year extension period has been approved for the company, within which to achieve the required free float threshold or have trading in its securities suspended. The approval was granted subject to conditions which the organisation has committed to meeting.
On its outlook, Mr Okelu projected a sales growth of 189.88 per cent from N5.002 billion in 2024 to N14.5 billion in 2028, while profit before tax is forecast to grow to N691.685 million from N211.889 million in 2024.
In Q1, 2024, Neimeth posted a turnover of N648.257 million compared to N468.780 million in the corresponding period the previous year. The Q1, 2014 profit before tax stood at N77.653 million compared to a loss of N189.505 million at the same period in 2013.
