Neimeth Pharmaceuticals reported a modest increase in half-year profit as stronger sales of pharmaceutical products offset higher production and borrowing costs, underscoring the resilience of the Nigerian drugmaker amid a challenging operating environment.
The company’s unaudited financial statements for the six months ended June 30, 2026, showed profit after tax rose by 2 percent to N207.66 million, from N203.76 million in the corresponding period of 2025. Earnings per share also improved slightly to 4.86 kobo from 4.77 kobo
Revenue rose to N3.6 billion in H1 2026, up from N2.9 billion in H1 2025, driven mainly by core pharmaceutical products, while the animal health segment saw a slight year-on-year decline.
The profit growth can be attributed to a decline in other income, which fell 64 percent year-over-year, driven by lower sundry receipts and interest income. This offset most of the gains from higher revenue, leaving operating profit up just 7 percent year-over-year. A decline in administrative expenses partly cushioned the impact, preventing a steeper fall.
Profit before tax rose only three percent year-on-year, as higher finance costs added further pressure, and profit after tax ultimately grew just 2 percent, a much smaller gain than the 26 percent revenue growth would otherwise suggest.
Current assets rose 3 percent year-on-year, from N6.2 billion to N6.5 billion, while total assets grew to N13.86 billion from N12.43 billion.
Liabilities increased year-on-year as the company took on more long-term borrowing, despite a reduction in short-term borrowings and payables while Equity increased year-on-year on the back of a reduction in accumulated losses.
In its Cashflow segment, Neimeth generated N1.28 billion in net cash from operating activities, up from N792 million in the same period last year as operating cash generation more than tripled year-on-year, driven largely by a swing in inventory movement.
This left the company with enough of a cash buffer to fund investing activities. Investing outflows, however, rose over tenfold, from N40 million to N456 million, as capex jumped from a modest N47 million to N457 million on the Oregun and Amawbia plant upgrades.
Net cash used in financing activities widened only slightly, from N901 million to N1.189 billion.
Despite strong operating cash flow, cash and cash equivalents fell 34 percent year-on-year, from N1.79 billion to N1.18 billion. The main culprit was finance costs, which surged from N838 million paid in H1 2025 to N909 million in H1 2026.