MeCure Industries Plc has announced the launch of its ₦8 billion Series 3 Commercial Paper Issuance under its ₦40 billion Commercial Paper Programme. The offer is now open and scheduled to close on Friday, February 14, 2025.
This new issuance comes on the back of MeCure’s solid financial performance, with the company achieving ₦30.2 billion in revenue and ₦1.56 billion in profit after tax for the third quarter of 2024. The company also maintains strong credit ratings, with a short-term A2 rating from Global Credit Rating (GCR) and an A1 rating from DataPro, affirming its financial stability and robust operations.
Offer Details:
- Issuer: MeCure Industries Plc
- Programme Size: ₦40 billion
- Series Size: ₦8 billion
- Tenor: 269 days
- Gross Yield: 29.00% (inclusive of withholding tax)
- Discount Rate: 23.89%
- Open Date: Monday, February 10, 2025
- Close Date: Friday, February 14, 2025
- Allotment Date: Friday, February 14, 2025
- Settlement Date: Monday, February 17, 2025
- Maturity Date: Thursday, November 13, 2025
- Minimum Investment: ₦5 million (5,000 units at ₦1,000 per unit)
The proceeds from this issuance will finance working capital needs, reinforcing MeCure’s operations in the pharmaceutical manufacturing and distribution sector.
The issuance is jointly arranged by AIICO Capital Limited, with MeCure offering competitive returns to investors seeking short-term debt securities. Interested parties are encouraged to act promptly to meet the February 14th deadline.
Key Financial Insights from MeCure Industries’ 2024 Q3 Financial Statement
MeCure Industries Plc has released its unaudited financial results for the third quarter of 2024, reflecting a strong performance and prudent financial management, which supports its ₦8 billion commercial paper issuance.
Revenue and Profitability
- Revenue: ₦30.2 billion for the 9-month period ended September 30, 2024, a significant increase from ₦21.6 billion in the same period of 2023.
- Gross Profit: ₦10 billion, driven by higher sales of pharmaceutical products.
- Profit After Tax: ₦1.56 billion, though down from ₦1.99 billion in the prior year, partially due to increased marketing and administrative expenses.
Expenses and Investments
- Marketing expenses rose to ₦1.94 billion, nearly doubling from ₦882 million in 2023, reflecting efforts to promote new and existing products.
- Administrative expenses stood at ₦3.08 billion, up from ₦2.25 billion.
- Significant capital investments included the acquisition of additional factory infrastructure and machinery, amounting to ₦10.9 billion.
Borrowings and Liquidity
- MeCure’s current liabilities include ₦11.7 billion in commercial paper obligations, highlighting its use of short-term financing.
- Total borrowings increased to ₦31.9 billion from ₦25.7 billion.
- Despite these obligations, the company maintained cash and cash equivalents of ₦868 million, showing an improvement in liquidity.
Credit and Risk Management
- MeCure has maintained strong credit ratings—A1 from DataPro and A2 from GCR—which reflect its ability to manage financial obligations effectively.
- The company’s financial risk management policies focus on controlling credit, liquidity, and market risks, ensuring the business remains sustainable.
These robust financials reinforce MeCure’s capacity to meet its debt obligations and fund ongoing operational and growth activities through the upcoming commercial paper issuance.