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Julic Plc, a marketer of pharmaceutical products to wholesale and retail sectors in Nigeria has recorded an after-tax turnaround, reporting its first profit in thirteen years.
Data from the Nigerian Exchange Group disclosed that revealed that the company’s after-tax profit rose to N35.6 million, a sharp contrast to the N75,739 loss recorded in 2023.
According to investing.com, a real-time financial data platform, the company’s shares skyrocketed by 1,646 percent last year ranking as one of the best-performing stocks, signaling renewed investor confidence and a positive shift in market sentiment.
The company shares started the year with N0.59 share price. However, it closed the year with an N10.30 share price. The stock did not decline throughout the year, posting consistent gains almost daily throughout Q1 2024.
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However, this year, despite profit-taking weighing on other companies’ stocks, Julic Plc retained its current share price at N10.3 as of March 25.
Analysts attribute the surge in share price to improved fundamentals, including cost-cutting measures, product diversification, and expansion into new markets. Additionally, favorable economic conditions and investor optimism have played a crucial role in the company’s rebound.
Julic Plc with a market capitalisation of N2.05 billion reported a turnover of N478.4 billion from sales of pharmaceutical products and household & consumer goods.
The company’s gross profit also saw a significant rise to N159.3 million, up from N85.2 million in the prior year with its profit margin amounting to 7.44 percent.
Despite the revenue growth, the company continues to face challenges, including high administrative expenses totaling N123.8 million, an increase from N85.3 million in 2023. it’s cost of sales was up 57.1 percent to N319 million in the review period from N203 million.
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A breakdown of Julic Plc’s financial results for the year ended 31st December 2024 revealed that debt obligations remain significant, with term loans standing at N167.1 million.
The company’s share capital increased significantly from N100 million to N274.9 million, while total assets grew marginally from N162.3 million in 2023 to N169.8 million in 2024. However, net assets, while improved, remained negative at N47.6 million, compared to negative N747 million in 2023.
Despite the positive financial performance, the company’s board of directors has opted not to declare a dividend for the year. The decision reflects a strategic focus on reinvestment and strengthening financial stability.
Julic plc remains committed to expanding its market share in Nigeria’s pharmaceutical and consumer goods sector. The company is focused on improving operational efficiency and reducing liabilities to sustain its positive growth trajectory.
