Neimeth targets N5b turnover this year

Neimeth International Pharmaceuticals Plc plans to grow its turnover by more than 127.7 per cent in the 2024 financial year compared to what it made in 2023.

The company plans to generate sales of N5 billion in the current business year against a turnover of N2.2 billion achieved in the prior year. From this quantum leap the company hopes to make a profit of N211 million.

Managing Director/Chief Executive Officer of Neimeth International Pharmaceuticals Plc, Pharm. Valentine Okelu, disclosed this at the 65th yearly general meeting of the company held in Lagos at the weekend.

According to him, the ambitious targets signal a bold step towards solidifying the company’s position as a leading healthcare provider in Africa.

“We have planned to move the company on a severe growth trajectory. For instance, in 2024, we plan to deliver N5 billion in revenue. We are looking at delivering N211 million as profit and if we stretch it up to 2028 to 2029, we are projecting N700 million in profits,” he stated.

Okelu said that despite facing challenges related to the operating environment, especially the 2023 business year, Neimeth remained undeterred in its pursuit of growth. He said the company is growing its production capacity to meet the demand of the market effectively.

He disclosed that the firm recently undertook a facility upgrade of its Oregun, Lagos factory increasing installed capacity by about 300 per cent. “After our factory upgrade, we are now working on a capacity upgrade to overcome the challenges of meeting customer demands.”

In line with this positive projection, the company recorded a turnover of N771 million for the three months ended December 31, 2023. This represents the highest sales revenue achieved in a single quarter for the year and a growth of 39 per cent over quarter three (Q3). Compared to the earlier quarters of the year, it also represents 64 per cent and 58 per cent growth over the revenues achieved in Q2 and Q1 respectively.

Okelu said the plan is to continue driving sales positively ta level where losses would be contained and profit achieved in 2024. Despite current macroeconomic woes, he believed that investment in pharmaceutical manufacturing in Nigeria is a good and viable business decision.

He said the Nigerian pharmaceutical industry is projected to worth $1.7 billion by 2024 with a yearly growth rate of 8.08 per cent, noting that there is a wide opportunity for the company to explore.

Shareholders encouraged the management of the company to be focused on delivering higher sales and profits to enable the company to return to dividend payments to shareholders.