MeCure Industries Value Drops by 19% as Investors Unload Shares
Pharmaceutical company Mecure Industries market value declined by about 19% as investors dumped their shares during five trading sessions on the Nigerian Exchange (NGX) last week.
Negative buying sentiment knocked off N9.8 billion from MeCure Industries market valuation on the Nigerian Exchange. Details showed that Mecure share price declined to N10.55 in the equities market from N12.95 at the beginning of the same week.
At the current market value, Mecure is trading at about 19% discount to 52-week. The company share price had hit N13 before it started to retreat. On Friday, the local bourse valued MeCure’s 4 billion shares outstanding for N42.2 billion.
Considered as publicly listed company by the Nigerian Exchange authority, MeCure Industries Plc is owned and controlled by five shareholders, according to details from its regulatory filing.
The Udani names have 86.39% combined interest in MeCure Industries Plc, followed by Zrosk Investment Management Limited, in addition to 0.68% owned by Anderline Dukor, Mecure Industries co-CEO.
Other directors control 2.92% with no statement around free floating as of Sept 2024. Zrosk Investment acquired a 10% equity stake in MeCure Industries Plc, according to an official statement. The transaction, which was conducted off-market, was finalized following approval from the Nigerian Exchange Group.
MeCure Industries said this strategic investment marks a significant milestone for the company as it continues to strengthen its capital base and accelerate its growth trajectory.
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In its 9-month financial year 2024 unaudited report, Mecure Industries grew revenue to N30.216 billion, up by 40% year on year from N21.577 billion in the comparable period in 2023.
Costs of sales followed suit; accelerated faster than revenue growth year on year. This thinned down its gross margin to 33.18% from 34.64% 12 months earlier. Details from its financial statement showed that costs of sales increased by 43.15% year on year to N20.187 billion from N14.102 billion.
Despite a slim margin, Mecure Industries stepped up spending on its marketing and administrative functions in the first nine months of the financial year 2024.
The company relates the increase in marketing expenses reflects go-to market spending for its new Amoxicillin Clavulanic Acid and Corticosteroids, market penetration of existing products via Pharma Mart, and regional sales agents, including incentives to raise awareness of the track and trace solution for combating counterfeit.
Its operating profit printed at N5.029 billion at the end of the third quarter of 2024, which was 15.34% above N4.360 billion posted in the comparable period in 2023. Due to high interest rate environment, the company’s finance costs came stronger year on year.
Its unaudited financial statement showed that Mecure Industries finance cost surged by more than 64% to N2.803 billion, from N1.708 billion 12 months earlier. This weakened the bottom-line performance.
Profit before tax fell by more than 16% to N2.226 billion from N2.651 billion over 12 months. With a moderate increase in its income tax, profit after tax settled at N1.558 billion, representing a decline of 21.59% year on year from N1.987. #MeCure Industries Value Drops by 19% as Investors Unload Shares Naira Plunges on Suboptimal FX Intervention
