Neimeth International Pharmaceuticals Plc has recorded a 49 per cent rise in profit after tax in the first quarter of 2025, showing a promising turnaround for the company as it begins to reap the benefits of its long-term strategic investments and restructuring efforts.
According to the firm’s unaudited financial statements filed with the Nigerian Exchange Limited, profit after tax climbed from N77.65 million in Q1 2024 to N115.76 million in the first three months of 2025. The sharp improvement marks a positive start to the year, reflecting renewed investor confidence in the company.
The company’s turnover rose by 86 per cent to N1.21 billion in Q1 2025, up from N648.26 million in the same period last year. Operating profit more than doubled, rising from N210.14 million to N449.87 million—an increase of 114 per cent. Gross profit also improved, growing by 27 per cent from N505.11 million to N639.72 million.
Earnings per share (EPS) grew from 2.0 kobo in Q1 2024 to 3.0 kobo in the current period, suggesting a continued rise in profitability. Total assets increased from N11.99 billion as at December 31, 2024, to N12.41 billion by March 31, 2025. Shareholders’ funds rose from N1.65 billion to N1.77 billion within the same period.
Managing Director and Chief Executive Officer, Valentine Okelu, said the Q1 2025 results reflect the company’s strong growth momentum and ongoing restructuring strategy.
“These numbers show we are on the right track. We remain focused on our 2025–2029 strategic growth plan, which is built around boosting revenues, cutting costs, and exploring strategic partnerships to ensure long-term sustainability,” he said.
Despite the ongoing macroeconomic challenges, Okelu said Neimeth is deliberately creating financial breathing room by restructuring its foreign currency-denominated loans into naira, thereby insulating the business from forex volatility.
“We are also negotiating extended payment terms on outstanding obligations to strengthen our cash position and ensure a return to positive cash flow,” he added.
A key milestone in the company’s turnaround story is the upgrade of its Oregun, Lagos manufacturing facility. The plant now meets Good Manufacturing Practices (GMP) standards, and plans are underway to expand capacity to cater to growing demand for quality medicines.
Beyond infrastructure, Neimeth is investing in research and development (R&D) to strengthen innovation and reduce dependency on imported medicines.
“We have made serious investments in R&D, both internally and through collaborations with academic institutions. This will help us develop affordable medicines that address the unique healthcare challenges of Africa,” Okelu noted.
This development comes as Neimeth reported a 102 per cent surge in annual revenue in 2024, rising from N2.2 billion in 2023 to N4.5 billion. The company believes the current financial momentum and structural reforms will help it resume dividend payments soon, a move that would mark a return to full profitability and restore investor confidence.
