Neimeth 2025 financial results show N1.49bn pre-tax profit, reversing 2024 losses, driven by sales growth and improved operational efficiency

Neimeth International Pharmaceuticals Plc has delivered a remarkable financial turnaround in 2025, posting a pre-tax profit of N1.49 billion for the year ended 31 December, compared with a pre-tax loss of N854.43 million in 2024, according to results filed with the Nigerian Exchange (NGX).

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The company attributed the recovery to higher sales and improved operational efficiency, alongside a foreign exchange gain of N48 million, a sharp reversal from the over N2 billion FX loss reported in the prior year.

Overall, Neimeth’s performance represents a 274% year-on-year improvement, signalling a strong return to profitability.

Fourth-quarter results reinforced the positive momentum, with a Q4 pre-tax profit of N1.15 billion, reversing a Q4 2024 loss of N1.16 billion and improving significantly from Q3 2025’s pre-tax profit of N340 million.

For the full year, revenue rose 64% to N7.37 billion from N4.49 billion in 2024, while gross profit increased 71% to N3.35 billion, reflecting stronger top-line growth and expanded gross margins.

Operating profit surged to N2.71 billion from just N18.89 million the previous year.

Profit after tax returned to the black at N982.11 million, compared with a loss of N885.33 million in 2024. Earnings per share improved to 22.98 kobo, up from a negative 20.72 kobo.

The pharmaceutical segment drove revenue growth, generating N7.18 billion of the total, while the animal health segment remained flat at N187.55 million.

Higher production efficiency and improved pricing contributed to the stronger gross margin.

However, operating expenses rose 88% due to higher staff costs and impairment charges, while finance costs increased 40% to N1.22 billion following debt restructuring.

Total assets grew 25% to N14.93 billion, supported by investment properties and inventory build-up.

Cash and cash equivalents fell to N1.61 billion from N2.15 billion due to debt repayments and inventory investments.

Neimeth restructured its borrowings, taking on N6.7 billion in new financing while repaying N2.2 billion, a move aimed at stabilising its financial structure and supporting liquidity.

On the NGX, Neimeth’s share price closed at N10.75 on 2 February 2026, up 9.7% from N9.80 on 30 January.

The stock has risen 69% year-to-date from N5.80, ranking 14th in YTD performance on the exchange.

With a market capitalisation of N41.9 billion and 4.27 billion shares outstanding, Neimeth is the 74th most valuable stock on the NGX, representing approximately 0.039% of total market equity.

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Neimeth’s strong recovery demonstrates the company’s resilience and effective operational management, marking a significant turnaround for the pharmaceutical firm after consecutive years of financial strain.