Neimeth declares N26.055mn loss for Second Quarter

Neimeth International Pharmaceuticals Plc has reported a loss of N26.055 million for Second Quarter ended 30^th March 2020, compared to a profit of N144.476 million posted in the same period of 2019.

The unaudited financial statements of the drug maker, published by the Nigerian Stock Exchange (NSE) website on Monday reveal that Turnover plummeted from N748.780 million at Q2 2019 to N558.691 million in the corresponding period this year.

By implication, the firm’s earnings shed in between the periods.

The negative trend similarly impacted Operating Profit, which crumbled by 82.2% from N160.264 million to N28.585 million.

Loss for the quarter came to N26.055 million down from a profit position of N144.476 million recorded at Q2 2019.

Even though the management of Neimeth did not cite reasons for the unimpressive performance in the document, the financials demonstrate significant increase in some aspects of the firm’s spending.

Most notable is Marketing and Distribution Expenses, which leapt by 71.7% from N69.620 million at Q2 2019 to N119.524 million at Q2 2020.

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There was equally a rise in Finance Costs from N15.788 million to N54.640 million, signalling a 244.9% increase.

Loss Per Share stood at -N0.01 compared to Earnings Per Share (EPS) of N0.08 recorded at Q2 2019.

Total Equity, however, received a marginal boost, moving 4.4% from N1.072 billion to N1.119 billion.

Neimeth’s outstanding shares are in the region of 1.139 billion units. Its Price to Earnings (PE) ratio is 4.20 while its EPS is N0.14.

At the moment, its Return on Investment is 35.31.  Neimeth closed trade on the floor of the NSE today at N0.64 per share, down by 6.6%.

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