The management of Neimeth is set to sell a part of the company to a private investor after receiving approval, as the pharmaceutical firm goes through financial woes, IgbereTV reports
Neimeth in financial woes
Neimeth’s cash level has been depleting, with the company’s operational loss increasing from N143.13 million of the period ended December 2020 to N295.84 million the corresponding period.
Its turnover had slumped from N394.56 million to N192.11 million during the same period, while reporting N309.11 million loss for the period ending December 2021, higher than the N178.80 million loss recorded in 2020.
The management’s inability to halt poor turnover has led to investors losing interest in holding the company’s shares, resulting to a bearish run and sentiment building around the firm in the capital market.
According to Ripples Nigeria analysis, year-to-date performance of Neimeth stock showed a -13.75% decline in shareholders total investment, as a result of investors engaging in sell off and its bearish state.
Between January to March 24, investors still holding Neimeth’s shares lost a total N493.78 million, with their total investment in the firm plunging to N3.09 billion from N3.58 billion of January, reflecting the financial situation the company is stuck in currently
