Covid-19: Neimeth To Raise Fresh N5bn To Expand Operations

Neimeth International Pharmaceuticals Plc. is to raise N5bn additional equity to support its operations, the company has said.

The local manufacturer of animal health and general health care products revealed on Monday that the decision was still pending approval by March 9.

The company said, “It was resolved that the company raise additional equity to the tune of N5bn. The Board resolution proposing to raise equity will be presented for approval at the Annual General Meeting of the company scheduled to hold on 9 March 2021.”

The firm’s revenue rose to N2.8bn last year, from the N2.37bn recorded in 2019 on increase in demands of pharmaceutical products arising from the Covid-19 pandemic.

But Neimeth saw a decline in profit by 3.45 per cent to N212.5m in 2020, from the 2019 records of N220.1m.

Based on details gathered from the company’s financial statement for 2020, its total borrowing as of September 30, was over N3.9bn.

Last year alone, Neimeth took a N2.78bn loan from creditors, according to the financial statement.

From the Central Bank of Nigeria’s intervention fund for the health sector, the company got N2.4bn. The company allocated N2bn to part finance the establishment of a new WHO complaint Pharmaceuticals factory in Anambra State.

Another N400m was channelled to augment the company’s working capital requirement, according to Neimeth.

In March 2019, the company had obtained a N100m overdraft from Fidelity Bank Plc to support its working capital requirement for clearing/duty payment, local raw material purchases, short fall in maturity obligations and other operational expenses.