Neimeth International Pharmaceuticals Plc has said that it is aiming for growth in its revenue and profits through the two major capital projects it has embarked upon.
The pharmaceutical firm disclosed this at the 64th Annual General Meeting of Neimeth held in Lagos.
Addressing shareholders at the meeting, the Chairman of the company, Dr Ambrose Orjiako, said Neimeth was undertaking a comprehensive factory upgrade of its Lagos manufacturing plant which is expected to increase its production capacity by 300 per cent within the next few years.
He also said a world-class pharmaceutical manufacturing facility targeted to meet World Health Organisation standards was being constructed at Amawbia, Anambra State.
“These expansion projects are aimed at boosting revenue and profits. These projects will not only sustain the upbeat performance of the company but will give it a quantum leap into the league of global healthcare commodities manufacturers,” Orjiako said.
He also announced a 20 per cent growth in the turnover of Neimeth for the 2022 business year. The company grew its turnover to N3.649 bn compared to N3.046 bn in the prior year of 2021.
However, the high cost of doing business in the year, especially with foreign exchange for the procurement of input materials and other inflationary pressures adversely affected profitability.
The company made a gross profit of N1.33 bn in 2022 but the inflationary effects of the operating environment impacted marketing and distribution costs which went up 30 per cent to N755m compared to N579 m in 2021 while administrative expenses grew by 52 per cent from N513.9m to N783m.
Finance costs increased from N188.2 m to N375m in 2022. Saddled with these costs, the company wrote a loss after tax of N406m for the 2022 business year.
Speaking at the AGM, the Acting Managing Director/CEO of Neimeth International Pharmaceuticals Plc, Gerald Oputa, assured shareholders that the projects will increase the profitability of the company by increasing the cost absorption capacity of plant operations.
“When we can manufacture more, unit cost of production will come down and that will lead to higher profits,” he said.