Finance

Neimeth shareholders approve N0.70 dividend for 2021

Neimeth plans expansion with capital raise

The shareholders of Neimeth Pharmaceuticals Plc yesterday approved N0.07 dividend of every 50 kobo share held in 2021 financial year, an eight per cent increase over the figure of N0.65 kobo paid to shareholders in 2020.

Neimeth International Pharmaceuticals had declared an after tax profit of N271million for the 2021 business, representing a 27 per cent rise over 2020 figure of N212.47 million. 

The pre- tax profit of the company rose by 23 per cent at N365.25 million over the 2020 figure of N297.38 million. 

This result was achieved on a modest turnover rise of seven per cent from N2.84 billion in 2020 to N3.05 billion in 2021. 

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Speaking at the company’s 63rd Annual General Meeting (AGM), the Managing Director/ CEO, Matthew Azoji, said the 2021vimoressive performance was achieved through prudent management of resources. ‘”We were able to rein in costs, eliminate waste and eke out income to increase the margin of profit,” Azoji explained. 

The fortunes of Neimeth has taken an upward turn since 2018 when it returned to profitablity after nearly a decade of predominantly losses.  

From a loss of N404.9 million in 2017 the company made profit of N166.4 million in 2018, N304.4 million in 2019, N297.3 million in 2020 at the upsurge of COVID pandemic and N365.2 million in 2021. 

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Chairman of the Board of Neimeth, Dr. Ambrosie Orjiako, told shareholders at the AGM that the board is working with Management to ensure that the growth trajectory is sustained

In the past three years the company has built a  regime of growth in revenue and profits after ten years of lull.  Azoji said the Company is taking a quantum leap in the 2022 business as it plans to increase capacity by 300 per cent.  

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This will be the outcome of  an ongoing facility upgrade at it’s Oregun, Lagos factory, he said. Speaking to  shareholders  at the AGM , Azoji said the capacity upgrade would increase the turnover and profits of Neimeth. 

Last year the company announced a two-pronged expansion programme – to build a new manufacturing plant at Amawbia in Anambra State and a facility upgrade of its Oregun plant. 

The facility upgrade is now nearing completion while work at the new plant is expected to get to an advanced stage by the end of this year, according to Azoji.

Thisday

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