Neimeth Int'l Pharm. Plc | September, 2023 - Financials |
NEIMETH INTERNATIONAL PHARMACEUTICALS PLC
FINANCIAL STATEMENTS 30 SEPTEMBER, 2023
1
Neimeth Int'l Pharm. Plc | September, 2023 - Financials |
NEIMETH INTERNATIONAL PHARMACEUTICALS PLC
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
Contents | Page |
Statement of Directors' responsibilities in relation to the financial statements | |
Statement of Compliance | |
Independent Auditor's Report | |
Statement of profit or loss and other comprehensive income | 3 |
Statement of financial position | 4 |
Statement of changes in equity | 5 |
Statement of cash flows | 6 |
Notes to the financial statements | 7 |
Other national disclosures: | |
Statement of value added | 46 |
Financial summary | 47 |
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Neimeth Int'l Pharm. Plc | September, 2023 - Financials |
NEIMETH INTERNATIONAL PHARMACEUTICALS PLC
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 SEPTEMBER 2023
Quarter 3 | 9 Months | |||
Ended | Ended | |||
30-Sep-23 | 30-Sep-23 | |||
Note | N'000 | N'000 | ||
Turnover | 8 | 553,223 | 1,510,627 | |
Cost of sales | 9 | (270,520) | (927,368) | |
Gross profit / (Loss) | 282,703 | 583,259 | ||
Other income | 10 | 113 | 89,798 | |
Marketing and distribution expenses | 11 | (123,211) | (576,826) | |
Administrative expenses | 12 | (158,275) | (447,054) | |
Exchange Gain / (Loss) | 13 | (19,712) | 3,112 | |
Operating (Loss) / Profit | (18,382) | (347,711) | ||
Finance costs | 14 | (101,218) | (224,447) | |
(Loss) / Profit before taxation | (119,600) | (572,158) | ||
Income tax expense | 28 | - | ||
(Loss)/Profit for the year from continued operation | (119,600) | (572,158) | ||
Other comprehensive income | ||||
Gain on available for sale assets | - | - | ||
Total other comprehensive income | - | - | ||
Total comprehensive (Loss)/Profit | (119,600) | (572,158) | ||
Basic (loss)/earnings per share - Kobo | 32 | (3) | (13) | |
Quarter 3 Ended
30-Sep-22N'000
875,988
(498,976)
377,012
7,237
(142,056)
(159,640)
2,194
84,747
(60,758)
23,989
-
23,989
-
-
23,989
1
9 Months | YOY |
Ended | Change |
30-Sep-22N'000
2,510,739 | -40% |
(1,424,034) | 35% |
1,086,705 | -46% |
20,182 | 345% |
(429,034) | -34% |
(415,252) | -8% |
105,342 | -97% |
367,944 | -195% |
(168,493) | -33% |
199,451 | 387% |
- | |
199,451 | -387% |
- | |
-387% | |
199,451 | |
11 | -227% |
The explanatory notes and statement of significant accounting policies form an integral part of these financial statements.
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Neimeth Int'l Pharm. Plc | September, 2023 - Financials |
NEIMETH INTERNATIONAL PHARMACEUTICALS PLC
STATEMENT OF FINANCIAL POSITION | 9 Months | 15 Months | ||
AT 30 SEPTEMBER 2023 | Ended | Ended | ||
30-Sep-23 | 31-Dec-22 | |||
Notes | N'000 | N'000 | ||
Assets | ||||
Non-current assets | ||||
Property, plant and equipment | 16. | 3,202,078 | 2,855,148 | |
Investment properties | 17 | 33,359 | 34,010 | |
3,235,436 | 2,889,158 | |||
Current assets | ||||
Inventories | 18. | 2,223,311 | 1,719,150 | |
Trade and other receivables | 19. | 1,314,446 | 1,391,841 | |
Other current assets | 20. | 71,539 | 62,984 | |
Cash and cash equivalents | 21.1 | 2,354,463 | 448,370 | |
5,963,759 | 3,622,345 | |||
Total assets | 9,199,196 | 6,511,503 | ||
Liabilities | ||||
Current liabilities | ||||
Trade and other payables | 24 | 1,427,637 | 1,266,150 | |
Current borrowing | 22.4 | - | - | |
Current portion of long term borrowings | 22.1 | 1,841,101 | 2,157,910 | |
Finance lease liabilities | 29. | - | - | |
Current tax payable | 26. | 56,929 | 86,769 | |
Deferred fair value gain on loan | 23 | 112,453 | 119,041 | |
3,438,120 | 3,629,870 | |||
Non-current liabilities | ||||
Non-current portion of long term borrowings | 22.1 | 1,487,426 | 1,487,426 | |
Deferred fair value gain on loan | 23 | 434,261 | 509,213 | |
Deferred tax liability | 27. | 106,226 | 106,226 | |
2,027,913 | 2,102,865 | |||
Total liabilities | 5,466,033 | 5,732,735 | ||
Net assets | 3,733,162 | 778,768 | ||
Equity | ||||
Ordinary shares | 30.2 | 2,136,552 | 949,579 | |
Share premium | 30.3 | 2,420,572 | 8,821 | |
Retained earnings | 31. | (823,962) | (179,632) | |
Total equity | 3,733,162 | 778,768 | ||
These financial statements were approved by the Board of Directors on October 26, 2023 and signed on its behalf by:
Pharm. J. Valentine Okelu | Mrs. Florence Onyenekwe | |
Managing Director / CEO | Ag. Executive Director - Finance | |
FRC/2023/PRO/DIR/003/655491 | FRC/2014/ICAN/00000010082 |
The explanatory notes and statement of significant accounting policies form an integral part of these financial statements.
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Neimeth Int'l Pharm. Plc | September, 2023 - Financials |
NEIMETH INTERNATIONAL PHARMACEUTICALS PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
Ordinary | Share | Retained | |||||
shares | premium | earnings | Total equity | ||||
N'000 | N'000 | N'000 | N'000 | ||||
At 1 October 2020 | 949,579 | 104,880 | 359,608 | 1,414,067 | |||
Changes in equity for the quarter | |||||||
Loss for the year | - | - | (441,081) | (441,081) | |||
Other comprehensive income | - | - | - | - | |||
Total comprehensive Loss for the quarte | - | - | (441,081) | (441,081) | |||
Transaction costs for equity issue | - | (59,492) | - | (59,492) | |||
At 30 JUNE 2022 | 949,579 | 45,388 | (214,414) | 780,553 | |||
At 1 January 2023 | |||||||
949,579 | 8,821 | (179,632) | 778,768 | ||||
Changes in equity for the Period | |||||||
Loss for the period | - | - | (572,158) | (572,158) | |||
Other comprehensive income | - | (1,000) | (72,173) | (73,173) | |||
Total comprehensive Loss for the quarte | - | (1,000) | (644,331) | (645,331) | |||
Right Issues Raised | 1,186,973 | 1,186,973 | |||||
Share premium on Right Issue | - | 2,492,644 | - | 2,492,644 | |||
Transaction costs for equity issue | - | (79,893) | - | (79,893) | |||
At 30 September 2023 | 2,136,552 | 2,420,572 | (823,963) | 3,733,162 | |||
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Neimeth Int'l Pharm. Plc | September, 2023 - Financials |
NEIMETH INTERNATIONAL PHARMACEUTICALS PLC
STATEMENT OF CASH FLOWS | ||||
FOR THE PERIOD ENDED 30 SEPTEMBER 2023 | 9 Months to | 15 Months to | ||
30-Sep-23 | 31-Dec-22 | |||
Notes | N'000 | N'000 | ||
Profit for the year | (572,158) | (406,299) | ||
Adjustment for: | ||||
Depreciation of property, plant and equipment | 16 | 78,041 | 143,867 | |
Adjustment on PPE | 16 | - | ||
Depreciation of investment properties | 17 | 651 | 1,086 | |
Gain or loss on disposal | 10 | - | ||
Impairment loss on trade receivables | 19.2 | 23,498 | 56,499 | |
Provision no longer required | 10 | - | ||
Impairment write back | 19.2 | - | ||
Finance cost | 14 | 224,447 | 375,002 | |
Exchange loss | 13 | (3,112) | ||
Income tax expenses | 28 | - | 18,245 | |
(248,632) | 188,400 | |||
Changes in: | ||||
Increase in inventories | (504,161) | (254,729) | ||
(Increase)/decrease in trade receivables | 53,896 | (172,132) | ||
Decrease/(increase) in other asset | (8,555) | (1,276) | ||
Increase in trade and other payables | 161,487 | 472,625 | ||
Decrease in finance lease liability | - | |||
Decrease in deferred tax liability | - | |||
Cash generated from operating activities | (545,965) | 232,888 | ||
Income tax paid | 26. | (69,040) | (67,202) | |
Net cash from operating activities | (615,005) | 165,686 | ||
Cash flows from investing activities | ||||
Purchase of property plant and equipment | 16 | (438,897) | (1,587,017) | |
Proceed from disposal of property, plant and equipment | 10.1 | 13,926 | ||
Net cash used in investing activities | (424,971) | (1,587,017) | ||
Cash flows from financing activities | ||||
Proceed from import finance facility | 22.4.2 | - | 2,803,833 | |
Repayment of loans | (225,000) | (2,360,607) | ||
Reclassification of Loan | 22.4 | (209,106) | ||
Finance cost paid | 14 | (220,135) | (351,909) | |
Proceed on Right issues | 22 | 3,679,617 | - | |
Dividend paid | 31 | - | (132,941) | |
Capital restructuring cost | 30.3 | (79,893) | (96,059) | |
Net cash (used in)/from financing activities | 2,945,483 | (137,683) | ||
Effect of exchange rate changes on cash and cash | ||||
equivalents | 586 | (4,290) | ||
Net (decrease)/increase in cash and cash equivalents | 1,905,507 | (1,559,014) | ||
Cash and cash equivalents at 1 January | 448,370 | 2,011,674 | ||
Cash and cash equivalents at 30 September | 21.2 | 2,354,463 | 448,370 | |
The accompanying notes and statement of significant accounting policies form an integral part of these financial statements.
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Neimeth Int'l Pharm. Plc | September, 2023 - Financials |
NEIMETH INTERNATIONAL PHARMACEUTICALS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1. The Company 1.1 Legal form
Neimeth International Pharmaceuticals Plc, a Company quoted on the Nigerian Stock Exchange was incorporated on 30 August 1957 as a limited liability company and commenced operation in January 1958. On 14 May 1997, Pfizer Inc. NY divested from the Company through a management buyout.
1.2 Principal activities
The principal activities of the Company are manufacturing and marketing of pharmaceuticals and animal health products.
2. Basis of preparation
2.1 Statement of compliance
These financial statements have been prepared for the year ended 31 December 2022 in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standard Board (IASB) and in compliance with the Financial Reporting Council of Nigeria Act, No 6, 2011. Additional information required by local regulators has been included where appropriate.
2.2 Basis of measurement
The financial statements have been prepared in accordance with the going concern principle under the historical cost convention, except for financial instruments and land and buildings measured at fair value.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates, it also requires management to exercise its judgment in the process of applying the accounting policies. Changes in assumptions may have a significant impact on the financial statements in the year the assumptions changed. Management believes that the underlying assumptions are appropriate and therefore the financial statements present the financial position and results fairly.
2.3 Going concern assessment
The financial statements have been prepared on a going concern basis, which assumes that the entity will be able to meet its financial obligations as at when they fall due. There are no significant financial obligations that will impact on the entity's resources which will affect the going concern of the entity. Management is satisfied that the entity has adequate resources to continue in operational existence for the foreseeable future. For this reason, the going concern basis has been adopted in preparing the financial statements.
2.4 Functional and presentation currency
These financial statements are presented in Naira, which is the Company's presentational currency. The financial statements are presented in the currency of the primary economic environment in which the Company operates (its functional currency).
2.5. Summary of Standards and Interpretations effective for the first time IFRIC 23 Uncertainty over Income Tax Treatments
The interpretation specifies how an entity should reflect the effects of uncertainties in accounting for income taxes.
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Neimeth Int'l Pharm. Plc | September, 2023 - Financials |
NEIMETH INTERNATIONAL PHARMACEUTICALS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
2.5.1 Standards Issued and Effective on or after 1 January 2022 a) IFRS 17 Insurance Contracts
IFRS 17 creates one accounting model for all insurance contracts in all jurisdictions that apply IFRS.
This standard replaces IFRS 4 - Insurance contracts.
The key principles in IFRS 17 are that an entity:
- identifies as insurance contracts those contracts under which the entity accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain, future event (the insured event) adversely affects the policyholder;
- separates specified embedded derivatives, distinct investment components and distinct performance obligations from the insurance contracts;
- divides the contracts into groups it will recognise and measure;
- recognises and measures groups of insurance contracts at a risk-adjusted present value of the future cash flows (the fulfilment cash flows) that incorporates all the available information about the fulfilment cash flows in a way that is consistent with observable market information plus (if this value is a liability) or minus (if this value is an asset) an amount representing the unearned profit in the group of contracts (the contractual service margin);
- recognises the profit from a group of insurance contracts over the period the entity provides insurance coverage, and as the entity is released from risk, if a group of contracts is or becomes loss-making, an entity recognises the loss immediately;
- presents separately insurance revenue, insurance service expenses and insurance finance income or expenses;
- discloses information to enable users of financial statements to assess the effect that contracts within the scope of IFRS 17 have on the financial position, financial performance and cash flows of the entity. To do this, an entity discloses qualitative and quantitative information about:
- the amounts recognised in its financial statements from insurance contracts;
- the significant judgements, and changes in those judgements, made when applying the Standard; and
- the nature and extent of the risks from contracts within the scope of this Standard.
2.5.2 Narrow Scope Amendments deferred until further notice a) IFRS 10 consolidated financial statements
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28): Narrow scope amendment address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28 (2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture.
b) IAS 28 Investments in Associates and Joint Ventures
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28): Narrow scope amendment to address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28 (2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture.
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Neimeth Int'l Pharm. Plc | September, 2023 - Financials |
NEIMETH INTERNATIONAL PHARMACEUTICALS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
2.5.3 New standards, amendments and interpretations issued but without an effective date
At the date of authorisation of these financial statements the following standards, amendments to existing standards and interpretations were in issue, but without an effective: This includes:
Amendments to IFRS 10 and IAS 28 consolidated financial statements and Investments in Associates and Joint Ventures
Amends IFRS 10 consolidated financial statements and IAS 28 Investments in Associates and Joint Ventures (2011) to clarify the treatment of the sale or contribution of assets from an investor to its associate or joint venture, as follows:
- Require full recognition in the investor's financial statements of gains and losses arising on the sale or contribution of assets that constitute a business (as defined in IFRS 3 Business Combinations);
- Require the partial recognition of gains and losses where the assets do not constitute a business, i.e. a gain or loss is recognized only to the extent of the unrelated investors' interests in that associate or joint venture.
These requirements apply regardless of the legal form of the transaction, e.g. whether the sale or contribution of assets occurs by an investor transferring shares in a subsidiary that holds the assets (resulting in loss of control of the subsidiary), or by the direct sale of the assets themselves.
3. Summary of significant accounting policies
The significant accounting policies set out below have been applied consistently to all periods presented in the financial statements unless otherwise indicated.
3.1 Intangible assets
3.1.1 Intangible assets acquired separately
Intangible assets acquired separately are shown at historical cost less accumulated amortization and impairment losses.
Amortization is charged to profit or loss on a straight-line basis over the estimated useful lives of the intangible asset unless such lives are indefinite. These charges are included in other expenses in profit or loss. Intangible assets with an indefinite useful life are tested for impairment annually.
Amortisation periods and methods are reviewed annually and adjusted if appropriate.
3.1.2 Intangible assets generated internally
Expenditures on research or on the research phase of an internal project are recognized as an expense when incurred. The intangible assets arising from the development phase of an internal project are recognized if, and only if, the following conditions apply:
- The Company has the intention of completing the asset for either use or resale.
- The Company has the ability to either use or sell the asset.
- It is possible to estimate how the asset will generate income.
- The Company has adequate financial, technical and other resources to develop and use the asset.
- The expenditure incurred to develop the asset is measurable.
- It is technically feasible to complete the asset for use by the Company.
If no intangible asset can be recognised based on the above, then development costs are recognised in income statement in the period in which they are incurred.
3.2 Property, plant and equipment 3.2.1 Initial recognition
All property, plant and equipment assets are stated at cost less accumulated depreciation less accumulated impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
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Neimeth Int'l Pharm. Plc | September, 2023 - Financials |
NEIMETH INTERNATIONAL PHARMACEUTICALS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
3.2.2 Subsequent costs
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.
3.2.3 Depreciation of property, plant and equipment
Depreciation on assets is calculated using the straight-line method to allocate their cost or revalued amounts to their residual values over their estimated useful lives, as follows:
% | |
Land | Nil |
Buildings | 3 |
Office equipment and furniture | 10 |
Machinery and equipment | 10 |
Motor vehicles | 20 |
Computer equipment | 331/3 |
The assets' residual values and useful lives are reviewed at the end of each reporting period and adjusted if appropriate. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable value.
The Company reviews the estimated useful lives of property, plant and equipment at the end of each reporting year.
3.2.4 Derecognition
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount, these are included in the income statement under operating income. When revalued assets are sold, the amounts included in the revaluation surplus are transferred to retained earnings.
3.2.5 Reclassification
When the use of a property changes from owner-occupier to investment property, the property is remeasured to fair value and reclassified as investment property. Any gain arising on re-measurement is recognized in the income statement to the extent that it reverses a previous impairment loss on the specific property, with any remaining recognized in other comprehensive income and presented in the revaluation reserve in equity. Any loss is recognized immediately in the income statement.
3.3 Investment properties
Investment Properties are Properties that are held for long-term rental yields or for capital appreciation or both, that are not occupied by any of the department within the Company. Investment properties are measured at cost less accumulated depreciation and accumulated impairment losses, if any. If an investment property becomes owner-occupied, it is reclassified as property, plant and equipment. It's carrying value at the date of reclassification becomes its cost for subsequent accounting purposes.
Where an investment property undergoes a change in use, evidenced by commencement of development with a view to sale, the property is transferred to inventories. A property's deemed cost for subsequent accounting as inventories is it's carrying amount at the date of change in use.
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Neimeth International Pharmaceuticals plc published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 09:43:43 UTC.