Neimeth returns to profit after three years of losses

Neimeth International Pharmaceuticals Plc has ended a three-year run of losses, posting a profit before tax of N1.48 billion for the financial year ended December 31, 2025. It was driven by a sweeping restructuring of foreign currency debts, tighter cost control and robust revenue growth.

The pharmaceutical manufacturer reported revenue of N7.37 billion, a 64 per cent jump from N4.49 billion the previous year, while operating profit surged to N2.7 billion from a near-flat N18.9 million in 2024. Net profit came in at N982 million, reversing a loss of N885.3 million in the prior year. The swing in pre-tax earnings alone exceeded N2.3 billion within a single financial year.

“The era of losses has ended. Neimeth has returned to profitability.This turnaround was driven by unwavering focus on fundamentals,”the  Managing Director / Chief Executive Officer ,Valentine Okelu declared at the company’s annual media briefing. “

At the heart of the recovery was a decisive shift in how the company managed its foreign exchange exposure. After years of heavy reliance on imported raw materials and vulnerability to naira volatility, Neimeth renegotiated its foreign currency-denominated liabilities and recorded a N48 million foreign exchange gain in 2025 — a dramatic reversal from a loss exceeding N2 billion the year before.

According to him, debt restructuring also played a central role. He  explained that finance costs rose 40 per cent during the year, but said the increase would have been far worse without active engagement with lenders. Okelu noted: “It would have been higher than this if not that we had to discuss with the banks and did everything we could to get the loans restructured.Instead of dumping heavy interest rates on the account with all the penalties, we were able to get the loans restructured for upwards of 10 years — so that we’ll be paying back the principal gradually while we’re paying the interest.” 

On the operational side,he  pointed out  that  marketing and distribution expenses fell 11 per cent despite inflationary pressures, and administrative costs were significantly reduced.

According to him, earnings per share turned positive at 22.98 kobo, compared with a negative 20.72 kobo previously — a swing of 43.7 kobo that helped drive a 69 per cent appreciation in the company’s share price, from N5.80 at the start of 2025 to N9.80 by late January this year.

Okelu said the company’s growth strategy centres on volume expansion rather than cost-cutting alone. “My principle is to expand your revenue. So even if costs are rising, if you’re able to triple your sales, you’re definitely doubling your earnings.”

As it consolidates its financial recovery, he  hinted that Neimeth is also investing heavily in manufacturing capacity. The company ,he  disclosed recently completed a major upgrade of its Oregun facility in Lagos and is pressing ahead with construction of a new plant in Amawbia, Anambra State, designed to meet World Health Organisation standards.

Okelu described the Amawbia facility as a long-term platform for continental growth, intended to position Neimeth to capitalise on trade opportunities under the African Continental Free Trade Area agreement.

Shareholders approved a N20 billion capital raise at the company’s Annual General Meeting in June 2025 to fund these ambitions. “We intend to access the capital market at the appropriate time to execute part of this approved raise,” Okelu said, adding that timing would depend on market conditions.

The Chief Executive used the occasion to call on government to do more for local manufacturers, pointing to structural disadvantages compared with overseas competitors. He noted that producers bear the full cost of generating their own power and water, while counterparts in countries such as India benefit from government-supported industrial clusters and export rebates.

He urged public health facilities to give preference to locally made medicines where price differences with imports fall within a 10 to 15 per cent range.

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Okelu also highlighted the threat of counterfeiting, saying Neimeth has introduced scratch-card authentication codes on key brands and periodically alters packaging to stay ahead of replication attempts.

As the company approaches its 70th anniversary, he said the priority is unambiguous. “We are repositioning Neimeth as a profitable, disciplined manufacturing company, a growth-oriented pharmaceutical brand, a resilient player in Nigeria’s healthcare value chain and a continental aspirant under AfCFTA.”