Soaring demand for medications has propelled MeCure Industries Plc to a 45 per cent revenue increase, reaching ₦46.03 billion in 2024.
The surge, driven by strong sales of acute and over-the-counter drugs, underscores the growing need for pharmaceutical products in Nigeria’s evolving healthcare landscape.
Rising Costs Cut Into Profit
However, despite this impressive growth, the company saw its after-tax profit drop by 20% to ₦2.32 billion from ₦2.91 billion.
Higher finance costs, which more than doubled from ₦2.39 billion to ₦4.98 billion, played a major role in this decline.
Rising interest rates and increased debt financing pushed expenses even higher.
Operational Performance And Expenses
Meanwhile, operating profit jumped by 36.19% to ₦8.28 billion, fuelled by strong revenue growth.
However, marketing expenses skyrocketed by 110%, and administrative costs climbed by 39.7%, squeezing profit margins down to 17.99% from 19% in 2023.
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At the same time, the cost of sales surged by 45% to ₦31.24 billion due to inflation-driven increases in raw material and logistics costs.
Expansion And Debt Growth
As part of its expansion strategy, MeCure increased its total assets by 42% to ₦54.84 billion, investing heavily in production capacity.
However, the company also raised its borrowings to ₦31.06 billion, pushing its gearing ratio up from 60% to 69%.
Dividend Announcement
For 2024, MeCure declared a final dividend of ₦0.15 per share, with shareholders on record by April 18, 2025, qualifying for payment.
Yet, the company chose not to offer bonus shares.
Outlook For The Future
Despite cost pressures, MeCure’s expansion efforts reinforce its position as a leading player in Nigeria’s pharmaceutical sector.
