Fidson Healthcare Plc, MeCure Industries Plc, and Neimeth International Pharmaceuticals Plc, Nigeria’s top listed pharmaceutical exporters, saw their profit margins squeezed by a sharp rise in production costs despite a surge in demand that lifted revenues by as much as 85 percent in the first quarter of 2025.
The three firms reported double‑digit sales growth year‑on‑year. Fidson led the pack with revenue jumping to N35.02 billion from N18.88 billion in Q1 2024. MeCure followed with N13.29 billion, up from N8.08 billion, while Neimeth posted N1.21 billion, nearly doubling the N648.3 million it recorded in the same period last year. This performance reflects strong demand for healthcare products both domestically and across African markets.
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Even though their revenue surged, each company grappled with soaring cost of sales, which rose more sharply than revenues in some cases. Fidson’s production costs doubled to N22.45 billion from N11.21 billion, MeCure’s climbed 66 percent to N8.99 billion, and Neimeth experienced the steepest spike, with cost of sales rising 296 percent to N566.6 million.
Despite this, all three maintained sizable balance sheets at quarter‑end; Fidson held total assets of N33.25 billion, MeCure reported N59.62 billion, and Neimeth had N12.41 billion.
On the bottom line, Fidson posted a profit after tax of N3.25 billion, more than triple the N1.04 billion recorded a year earlier, reflecting its scale advantage. Neimeth reported N115.8 million in net income, up from N77.7 million. However, MeCure saw its profit decline 11 percent year‑on‑year, from N641.5 million to N568.7 million, underscoring the impact of cost pressures on the pharmaceutical company.
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These cost pressures mirror broader macroeconomic challenges facing Nigerian manufacturers, a weakened naira, high logistics and energy expenses, and reliance on imported raw materials. For an industry already navigating regulatory hurdles and foreign exchange constraints, preserving margins is becoming as critical as top‑line expansion.
“The rise in input costs continues to test our operating model, but we remain focused on efficiency and localisation strategies,” Fidson said in a statement accompanying its financials.
The strong revenue numbers indicate a healthy demand environment, but unless input costs are controlled, the sector’s earnings growth may stall in subsequent quarters. For investors, the results serve as a reminder that top‑line growth doesn’t always translate into bottom‑line gains, particularly in a high‑inflation, import‑dependent economy.
