MeCure Industries Secures ₦8 Billion to Boost Pharmaceutical Expansion

MeCure Industries Secures ₦8 Billion to Boost Pharmaceutical Expansion

MeCure Industries Plc has launched an ₦8 billion Series 3 Commercial Paper Issuance under its ₦40 billion Commercial Paper Programme. The offer opened on Monday, February 10, 2025, and will close on Friday, February 14, 2025.

This issuance follows MeCure’s strong financial performance in 2024, when the company recorded ₦30.2 billion in revenue and ₦1.56 billion in profit after tax for the third quarter. MeCure maintains strong credit ratings, with a short-term A2 rating from Global Credit Rating (GCR) and an A1 rating from DataPro, reinforcing its financial stability and operational resilience.

The funds raised will support MeCure’s working capital needs, strengthening its pharmaceutical manufacturing and distribution operations. AIICO Capital Limited is arranging the issuance, offering competitive returns to investors looking for short-term securities. The minimum investment required is ₦5 million, with 5,000 units available at ₦1,000 per unit.

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Financial Highlights:

• Revenue: ₦30.2 billion for the nine months ending September 30, 2024, up from ₦21.6 billion in the same period of 2023.
• Gross Profit: ₦10 billion, fueled by increased pharmaceutical sales.
• Profit After Tax: ₦1.56 billion, lower than ₦1.99 billion in 2023 due to rising marketing and administrative costs.
• Marketing Expenses: Increased to ₦1.94 billion from ₦882 million in 2023, reflecting aggressive product promotion.
• Administrative Expenses: Rose to ₦3.08 billion from ₦2.25 billion.
• Capital Investments: ₦10.9 billion spent on expanding factory infrastructure and acquiring new machinery.
• Commercial Paper Obligations: ₦11.7 billion in outstanding liabilities.
• Total Borrowings: Increased to ₦31.9 billion from ₦25.7 billion.
• Cash Reserves: ₦868 million in cash and cash equivalents.
• Credit Ratings: A1 from DataPro and A2 from GCR, highlighting strong creditworthiness.

MeCure’s financial risk management strategy focuses on maintaining liquidity, managing credit risk, and ensuring sustainable growth. These factors enhance the company’s ability to meet debt obligations and expand operations efficiently.

Investors interested in the commercial paper issuance must act before the February 14, 2025, deadline to take advantage of the high-yield opportunity.