21 May 2018

Nigeria: Neimeth Returns to Profitability, Appoints Independent Director

Neimeth International Pharmaceuticals Plc has reported a profit after tax (PAT) of N30 million for the half year ended March 31, 2018, compared with a loss of N195 million in the corresponding period of 2017. This is just as the company has appointed Mrs. Bashirat Odunewu as an independent director in compliance with the statutory requirement for good corporate governance.

An analysis of the results showed that Neimeth posted revenue of N877.317 million in 2018, up from N601.427 million in 2016. Cost of sale stood at N399.7 million compared with N259 million, while it ended the period with gross profit of N477.6 million, up from N342.3 million in 2016.

In line with its cost saving strategies, the company reduced its marketing and distribution expenses to N149 million, down from N188 million in 2016. Similarly, administrative expenses declined from N304 million to N256 million. Consequently, profit before tax stood at N30 million in 2018 as against loss of N195 million in 2016.

Meanwhile, the new independent director is a chemistry graduate of the University of Manchester Institute of Science and Technology. She also holds a Master of Science degree from the University of London. She is a fellow of the Institute of Chartered Accountants of Nigeria (ICAN), and a member Chartered Institute of Arbitrators (MCIArb).

Odunewu has over 20 years experience in the financial services sector. She is currently the Group Executive - International Banking at First Bank Nigeria Limited.

The company said it was positioned for a rapid recovery having overcome the consequences of the fire that occurred in March, 2017.

Neimeth which had a rough patch in recent times following the challenging operating environment. However, the Chairman of the company, Dr. ABC Orjiako, had announced plans to overhaul the corporate structure of the company in such a way that it will refocus it for a meaningful and sustainable growth.

Going by the 2016 performance of the company, the restructuring efforts have started to yield fruits as the company has returned to profitability for the full year.

This led to the company coming up with a three strategic imperatives to revitalise sales and generate more revenue, reduce costs and optimise efficiency and transform the organisational culture towards a new Neimeth.

According to the company, new practices were adopted which contributed to better inventory management, production planning and coordination between manufacturing and sales activities most importantly.

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