Neimeth International Pharmaceuticals Plc plans to restructure its foreign currency-denominated debts after incurring N2.03 billion in foreign exchange, or FX, losses. Speaking to the media about the development, Pharm.
Valentine Chinedu Okelu, Managing Director/CEO of Neimeth International Pharmaceuticals, stated: “Neimeth experienced a significant recovery in its operations, positioning us as one of the fastest-growing pharmaceutical companies on the Nigerian Exchange Limited, NGX, in 2024. While our external auditors finalise the 2024 financials, interim reports and accounts show a robust growth prognosis, driven by fundamental changes in our business. “Our focus on cost efficiencies and effective route-to-market methods has resulted in overall operational improvements.
“However, despite these remarkable achievements, we encountered a significant foreign exchange loss amounting to N2.03 billion, leading to a pre-tax loss of N1.69 billion for the year.”To address this issue, we are aggressively restructuring our foreign-denominated debts and changing them into naira to protect ourselves from future exchange volatility.
“Additionally, we are negotiating extended payment terms on outstanding facilities to create financial headroom for a swift return to positive cash flow and profitability.” Okelu also indicated that, as part of its effort to cut production costs, the company would focus more on procuring raw materials locally while lowering imports.
According to him, “Neimeth has a well-defined five-year strategy plan centred on product and market diversification. I can confirm that we are actively pursuing market expansion, which is an important component of our diversification strategy and will strengthen our resilience and long-term sustainability.” On its financials, he stated: “On revenue growth, the Company’s revenue increased by 102%, rising from N2.2 billion in 2023 to N4.5 billion in 2024.”
In terms of profitability, gross profit increased by 170%, while we reversed a negative bottom line from 2023 with an operational profit of N338.5 million, a 126% improvement over the previous year’s loss of N1.3 billion. This is an absolute profit increase of N1.638 billion.”
