The managing director/CEO, Neimeth International Pharmaceuticals, Valentine Okelu stated this at a media parley held in Lagos.
He disclosed that the decision to raise fresh capital is not ruled out as the management of the company will be having a strategy session in less than one month to decide on its possibility.
According to him, our expansion program is twofold: the modernisation of our existing Oregun plant and the development of a new state-of-the-art manufacturing facility.
“We recently completed the long-planned upgrade of our manufacturing facility in Oregun, Lagos, which was originally established in 1976. This upgrade aligns with Good Manufacturing Practices (GMP) and enhances our cGMP compliance. We are also embarking on capacity upgrade of the plant to improve its manufacturing capacity.”
Okelu added that “in line with our vision of becoming a pharmaceutical manufacturing hub for Africa, Neimeth is constructing a WHO-compliant production facility in Anambra State. This facility will serve as a center of excellence for pharmaceutical research, development, manufacturing, and distribution.
“Furthermore, this facility will enable us to maximize the opportunities presented by the African Continental Free Trade Agreement (AfCFTA), positioning Neimeth as a key player in pharmaceutical production and distribution across the continent.”
On 2024 business performance, he stated that the Company experienced a significant recovery in its operations, positioning it as one of the fastest-growing pharmaceutical companies on NGX in 2024.
“The company’s revenue surged by 102 per cent, increasing from N2.2 billion in 2023 to N4.5 billion in 2024. Gross profit recorded a 170 per cent increase, while we reversed a negative bottom line from 2023 with an operating profit of N338.5 million, a 126 per cent improvement over the N1.3 billion loss incurred in the previous year. This represents an absolute profit improvement of N1.638 billion.
“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,” Neimeth MD said.
He revealed that “to mitigate this challenge, we are aggressively restructuring our foreign-denominated loans, converting them into naira to shield us from further forex 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.”
He also disclosed that Neimeth operates with a well-defined five-year strategic plan focused on product and market diversification, saying that “our five-year projections from 2025 to 2029 outline a path toward substantial revenue and profit growth. With strategic investments maturing, we are poised to return to profitability and resume dividend payments in the near future.
“Our new strategic direction is to establish Neimeth as a recognised international brand within Sub-Saharan Africa. We will pursue this ambition with vigor, building strong partnerships and leveraging market opportunities to drive sustainable expansion.”
https://leadership.ng/neimeth-pharmaceuticals-to-raise-fresh-funds-for-expansion/
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