Mecure, a listed provider of innovative health solutions, has declared an 11 percent year-on-year drop in profit after tax to N568.7 million in the first quarter of 2025 from N641.5 million in the same period of 2024, as rising operational costs ate into bottom-line gains.
The firm’s cost of sales rose to N8.99 billion in Q1 2025 from N5.41 billion, leaving gross profit at N4.30 billion, which is up 61 percent year-on-year but still under pressure from input-cost inflation.
Top-line growth remained robust, with revenue climbing 65 percent to N13.29 billion in Q1 2025 from N8.08 billion, driven by higher product volumes and price adjustments amid sustained demand for its flagship pharmaceutical offerings.
Operating profit surged 55 percent to N2.57 billion from N1.66 billion in Q1 2024, which reflects operational leverage and efficiency initiatives in manufacturing and distribution.
Finance costs more than doubled to N1.75 billion in the first quarter of 2025 from N0.74 billion, largely on higher interest on its commercial paper and term-loan facilities. Profit before tax fell 11 percent to N812.4 million from N916.4 million.
Read also: MeCure revenue up 45% on increased demand for medication
After accounting for an income-tax expense of N243.7 million in Q1 2025, Mecure reported earnings per share of N0.14 (basic and diluted), down from N0.16 a year earlier.
The firm’s total assets rose 8.7 percent to N59.62 billion as of March 31, 2025, funded by total liabilities of N45.09 billion and equity of N14.53 billion. Working-capital lines show inventories climbing to N10.83 billion and trade receivables to N10.18 billion, while cash and equivalents stood at N1.53 billion.
Cash flow from operations remained negative at N0.81 billion, as the company continued to tie up funds in receivables and inventory. Capital expenditure in the quarter totalled N1.97 billion, focused on capacity expansions and technology upgrades.
These outlays were more than offset by financing inflows of N3.97 billion, resulting in a net cash increase of N1.19 billion for the period.
Mecure’s debt profile at quarter-end comprised a N22.72 billion term loan, N12.32 billion of commercial paper, N4.60 billion in working-capital facilities and a N0.31 billion overdraft.
Management stated in a note that ongoing investments in production capacity and digital supply-chain enhancements will position the company for further revenue growth, even as it works to rein in borrowing costs in the remainder of 2025.
