AUG. 14, 2018: NIGERIA'S PHARMADEKO STRETCHING LIMBS AT LAST

Market place realities may not be fully in favour of PharmaDeko Plc yet but one thing is obvious from its latest half year figures: It is stretching tired limbs at last.

According to the unaudited figures released recently, core revenue from pharmaceutical business is still going through a bad patch and so, it dropped marginally by 1.95% to N684.384m.

Then the first good news occurred: Cost associated directly with this revenue dropped faster by 12% to N247.484m leading to 11.2% increase in gross profit to N336.9m.

With this as base profit, PharmaDeko built up its profit base further as income from other sources more than doubled to N8.461m leafing to much reduced 1.23% decrease in total income to N692.845m from N701.459m.

Then, good icing came in the form of 2.72% decrease in Overhead expenses to N342.803m from N352.372m.

Hence, compared to half year loss of N45.8m by June last year, the company reported modest N2.558m profit before tax this time around.

Equally comforting was that its liquidity position improved greatly too with working capital ending the half year at N142.765m surplus compared to N61.167m deficit previously.

This is yet to translate into more cash to play with though as cash balance closed the period at N8.187m down 87%.

However, the bulk of the liquidity is tied down in inventories which at N278.555m was up 21.7% on June 2017's N228.779m.

PHARMADEKO PLC: Half year, Nm
                                 2018.           2017
Total income.      692.845.     701.459
Core revenue.      684.384.     697.975
Cost of sale.        347.484.     394.887
Gross profit.        336.900.     303.088
Other income.         8.461.          3.484
Admin etc.          342.803.      352.372
Profit before tax.   2.558.       (45.8)
Profit margin %.     0.37.         (6.53)
Working capital.142.765.     (61.167)
Cash.                       8.187.      62.958
Inventories.        278.455.    228.459

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