Fidson Healthcare Plc, Mecure Industries Plc and Neimeth International Pharmaceuticals Plc operate within the pharmaceutical sector, but their performance and investment potential in 2025 differ significantly.

On market performance, which is very important to investors, as of close of trading in November, Fidson offered the highest capital gain with a share price YtD gain of 158% and dividend yield of 2.43%

Neimeth recorded a YtD gain of 136%, while Mecure, which is the most capitalized stock among the three, stood at 98.28%.

So, in terms of market capitalization, Mecure leads, while in terms of shareholders’ return, Fidson leads

Let us look at how they performed financially.

Revenue and drivers 

In the first nine months of 2025, each company showed strong revenue growth, although at different rates:

Fidson reported N93.08 billion in revenue, a 56% increase compared to N59.73 billion in 9M 2024. The growth was driven by higher sales in ethical products (drugs, tablets, injectables) and continued expansion in over-the-counter (OTC) products.MeCure posted N60 billion in revenue, a 99% increase from N30 billion in 9M 2024. The growth was primarily driven by acute and OTC products, with acute contributing N33 billion, growing by over 98%.Neimeth recorded N5 billion in revenue, reflecting a 62% increase from N3.1 billion in 9M 2024. Much of its revenue came from pharmaceutical products, with N4.84 billion, and the rest from animal health, highlighting the company’s diversification.

Verdict: MeCure outperforms the others in terms of revenue growth, while Fidson dominates in absolute revenue.

Cost management and margins 

Despite strong revenue growth, managing costs differs.

All three companies performed well in terms of gross profit margins, which indicates efficient production processes.

However, overhead costs (admin, marketing), finance costs (borrowings), and foreign exchange losses are the factors that eat into profits.

Fidson: For every N100 Fidson earned in 9M 2025, they kept N41 after covering production costs (gross margin).

After overhead and finance costs, Fidson is left with N8.60 of every N100 in net profit. This is the highest among the companies, but there’s room for improvement by better managing overhead and finance costs.

MeCure: For every N100 MeCure earned, they kept N34 after covering production costs (gross margin).

After covering overhead and a 137% rise in finance costs, MeCure is left with N7.40 of every N100 in net profit.

Although the operating margin (22%) is solid, the rise in finance costs impacted profitability.

Neimeth: For every N100 Neimeth earned, they kept N49.60 after covering production costs (gross margin), which is excellent.

However, after covering overheads and a 198% rise in finance costs, Neimeth is left with N6.80 out of every N100 as net profit.

Strong production efficiency is overshadowed by rising finance costs.

Verdict: Fidson leads in profitability, but MeCure’s strong growth suggests potential improvement. Neimeth needs to manage finance costs more effectively.

Profitability and growth drivers 

In 9M 2025, Fidson led in profitability with a net profit of N7.97 billion, a 131.75% increase from the previous year. This growth was driven by both strong revenue and a N1 billion drop in foreign exchange losses.

MeCure experienced the highest growth in profits, with a net profit of N4.46 billion, a 186.14% increase compared to 9M 2024.

Neimeth, with the lowest profit at N340 million, showed a modest 9.43% increase. This reflects rising finance costs and Neimeth’s smaller scale compared to Fidson and MeCure.

Verdict: Fidson leads in profitability, but MeCure’s strong growth shows potential for future improvement. Neimeth needs to improve efficiency and manage costs.

How strong are their balance sheets and who is carrying more debt? Fidson: As of 9M 2025, Fidson had N78.23 billion in assets and N29.41 billion in equity, with N19 billion in loans.

The debt-to-equity ratio of 1.45 indicates moderate leverage, showing Fidson is using debt but not excessively.

MeCure: MeCure has N78.23 billion in assets and N17.82 billion in equity, with N53.7 billion in loans with a debt-to-equity ratio of 3.02.

However, it is managing to cover its interest expenses as reflected in its interest coverage ratio.

Neimeth: Neimeth has N13.35 billion in assets and N1.99 billion in equity, with N5.26 billion in loans.

The debt-to-equity ratio of 2.6x indicates relatively high leverage.

Verdict: Fidson wins here, as they manage their debt more conservatively, striking a better balance between growth and financial risk.

Dividend history: Who rewards investors? Fidson has a strong and consistent dividend culture, increasing its dividend per share to N1 in 2024 from N0.60 in 2023.

The 2024 dividend was paid on August 1, 2025, and the stock currently offers a dividend yield of 2.50%.

MeCure maintained a dividend payout of N0.15 per share in 2024, the same as in 2023.

MeCure offers a dividend yield of 0.50%, which is modest compared to Fidson.

Neimeth paid a dividend of N0.07 per share for the 2021 financial year, and no dividends have been paid since.

This suggests a less consistent dividend policy, which may be less appealing for income-seeking investors.

Verdict: Fidson is the leader in terms of dividend rewards, offering a higher and more yield – 2.50%.

Valuation: What are they worth and what is the market saying? MeCure is the most capitalized stock, with a market capitalization of N119 billion, compared to net assets of N17.8 billion.

The stock is priced at 13 times its operating profit, 22 times its earnings, and 6 times its book value, suggesting that investors are expecting continued growth.

Fidson appears fairly valued, with a moderate P/E ratio and EV/EBITDA ratio.

The stock is priced at a premium relative to its book value, but strong earnings growth and consistent dividend payments make it a potentially attractive option for investors seeking steady performance.

Neimeth is highly valued, with a high P/B ratio and EV/EBITDA, suggesting that investors are betting on future profitability and growth.

However, with negative earnings and no current profitability, it’s a risky investment one that could either pay off big or disappoint if expectations aren’t met.

Bottomline 

Fidson leads in shareholder return, profitability, and dividend rewards

MeCure has the highest growth potential, with strong revenue growth and improving profitability.

Neimeth is the least profitable and most highly leveraged.

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