Prime Business AfricaMecure Industries is the worst-performing pharmaceutical stock so far in 2025, according to Prime Business Africa’s analysis of its stock market activity in the last five months.
The analysis showed that the company’s share price fell by N2.8 kobo from N13.90 kobo on January 2 to N11.10 kobo on May 9, indicating that investors don’t consider Mecure’s share as a valuable asset to hold.
Join our WhatsApp ChannelThe 20.14 per cent decline in share price denotes that stock market investors were bearish on Mecure’s shares, which implies that they believe the asset will experience a downward trajectory.
The expectation cost Mecure’s shareholders a combined loss of N11.2 billion between January and May, representing a 20.14 per cent decline in their investment.
In addition, Mecure’s market valuation dropped from N55.6 billion recorded at the start of the first quarter, to N44.4 billion as of May 9, according to analysis.
The company’s struggle to attract investors comes amid its report that Q1 2025 cost of sales grew faster than revenue, surpassing the turnover generated in the first quarter of last year, and its finance cost dragged down net income.
Checks by Prime Business Africa showed that Mecure had recorded 64.53 percent in its revenue, after generating N13.29 billion in Q1 2025, surpassing the N8.07 billion turnover reported in Q1 2024.
However, the cost of sales grew by 66.23 percent year-on-year, from N5.41 billion to N8.99 billion, leaving Mecure with N4.29 billion gross profit, which is 61.08 percent higher than the N2.66 billion filed in Q1 last year.
After accounting for marketing expenses, administrative expenses and other income, Mecure recorded an operating profit of N2.56 billion, up by 54.98 percent year-on-year from N1.65 billion.
But a 137.16 per cent year-on-year increase in finance cost, which comprises interest expense on borrowings, and rose from N739.56 million to N1.75 billion, negatively impacted Mecure’s bottom line, as profit before tax fell by 11.34 per cent.
According to the company’s financials, profit before tax fell to N812.43 million in the first quarter of 2025, from N916.4 million reported in the corresponding period last year.
After deducting income tax, Mecure had N568.70 million as profit after tax (PAT) in Q1 this year, falling to exceed the N641.48 million reached in Q1 the year before.
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