Emzor Pharmaceutical Industries Limited Launches ₦10 Billion Series 2 Commercial Paper

Oyeyemi Kosoko

— 4 min read
Emzor Pharmaceutical Industries Limited Launches ₦10 Billion Series 2 Commercial Paper

AssetBase is pleased to announce that Emzor Pharmaceutical Industries Limited (“Emzor” or “the Company”) has launched its ₦10.0 billion Series 2 Commercial Paper (CP) under its ₦10.0 billion Commercial Paper Programme. This offering is now available to retail investors via the AssetBase platform, providing a unique opportunity to participate in one of Nigeria’s leading pharmaceutical companies.

Company Overview: A Pillar of Nigerian Healthcare

Founded in 1987, Emzor has grown from a modest operation with just four product categories to a pharmaceutical powerhouse offering over 200 products across 26 categories, including analgesics, antimalarials, vitamins, multivitamins, nutritional oils, antibiotics, cardiovascular and gastrointestinal products, antihelmintics, and hematinics. Its flagship brand, Emzor Paracetamol, is widely recognized and trusted across Nigeria.

Emzor operates four manufacturing plants, three of which are in Lagos State, along with two warehouses, fourteen distribution outlets, and a network of over 160 distributors serving more than 25 countries in Sub-Saharan Africa, including Sierra Leone and Liberia. Its operations employ over 830 staff and are supported by a wholly owned subsidiary, Zolon Healthcare Limited, and by the 2021 acquisition of Emzor Pharma Funding.

The company is co-owned by Dr. Stella C. Okoli and Oreon EPI Limited, reflecting a mix of entrepreneurial vision and corporate governance. Over the decades, Emzor has remained committed to manufacturing and distributing high-quality, affordable pharmaceuticals, solidifying its reputation as a key player in Africa’s healthcare landscape.

Operational Footprint and Market Presence

Emzor’s operations are robust and diversified:

  • Factories: 4 (3 in Lagos State)
  • Warehouses: 2
  • Distribution Outlets: 14
  • Distributors: 160 across Sub-Saharan Africa
  • Countries Served: 25+
  • Employees: 838

The company’s wide-reaching distribution network, combined with strategic market penetration, ensures that Emzor products reach hospitals, pharmacies, and clinics efficiently, enhancing access to essential medicines across Nigeria and neighboring countries.

Financial Performance: Strong Growth Across the Board

Emzor’s financial results through Q3 2025 demonstrate robust growth, operational efficiency, and strong profitability, making it a compelling investment for both retail and institutional investors.

Revenue & Gross Profit

  • Revenue: ₦51.3 billion (up 40% YoY from ₦36.7 billion)
  • Cost of Sales: Increased by 33% YoY, lower than revenue growth, reflecting improved cost discipline
  • Gross Profit: ₦20.9 billion (up 52% YoY from ₦13.8 billion)
  • Gross Margin: Expanded to 41% from 38%, signaling better pricing discipline and cost control

Operating Performance

  • Operating Profit: ₦9.6 billion (up 66% YoY)
  • Operating Margin: 19% (up from 16%)
  • Administrative Expenses: ₦X billion (up 56% YoY, scale-related)
  • Selling & Distribution Expenses: Increased modestly by 14% YoY, reflecting improved route-to-market efficiency
  • Other Operating Income: ₦267 million vs. ₦18 million, providing a minor but positive earnings boost
  • Expected Credit Loss Impairments: ₦117 million, manageable relative to revenue

Profitability & Financing

  • Finance Costs: Declined 61% YoY to ₦3.1 billion, boosting net profitability
  • Profit Before Tax: ₦7.4 billion (up 327% YoY)
  • Income Tax Expense: Up 319% YoY in line with higher profitability
  • Net Profit: ₦5.17 billion (up 184% YoY)
  • Net Margin: 10% (up from 8%)

EBITDA

  • EBITDA: ₦10.8 billion (up 50% YoY)
  • EBITDA Margin: 21%, reflecting improved operating leverage and cash earnings quality

Balance Sheet Strength

  • Total Assets: ₦96.6 billion (up 30% YoY)
  • Total Equity: ₦20.4 billion (up 66% YoY)

These metrics highlight Emzor’s operational leverage, improved cost control, and strong cash generation capabilities — all of which underpin the company’s attractive investment profile.

Credit Ratings: Stability & Trust

Emzor’s commercial paper benefits from strong credit ratings, reflecting its financial stability and market leadership:

  • GCR (Global Credit Rating): A2
  • DataPro: A1*

These ratings are supported by Emzor’s strong liquidity, cash flow generation, international partnerships, and technical collaborations, providing investors with confidence in both performance and reliability.

Commercial Paper Offering Details

  • Issuer: Emzor Pharmaceutical Industries Limited
  • Dealer: FSDH Capital Limited
  • Programme Size: ₦10.0 billion
  • Series: Series 2
  • Issue Size: ₦10.0 billion
  • Tenor: 364 days
  • Annual Implied Yield: 26%
  • Gross Expected Yield: 26%
  • Offer Start Date: Thursday, 15 January 2026
  • Indicative Maturity Date: Thursday, 14 January 2027
  • Minimum Subscription: ₦100,000 (and multiples thereof)
  • Use of Proceeds: Support working capital requirements
  • AssetBase Allocation: ₦70 million

Please note: yields are subject to a 10% withholding tax and a 2% processing fee, deducted from interest before payout.

Why Invest in Emzor CP?

  1. Industry Leadership: Emzor is a key player in Nigeria and Sub-Saharan Africa’s pharmaceutical sector, with a portfolio spanning 26 product categories and a strong brand presence.
  2. Robust Financial Growth: Revenue, profit, and margins have all expanded materially, reflecting operational efficiency and market demand.
  3. Credit Strength: Rated A2 (GCR) and A1* (DataPro), signaling stability and reliability.
  4. Global & Regional Reach: Distribution networks across 25+ countries and partnerships with global technical partners support sustainable growth.
  5. Attractive Yield: 26% implied annual yield on a 364-day tenor offers a compelling risk-return profile for investors.

How to Participate

Investors can subscribe via AssetBase:

  1. Log in to your AssetBase account (or create one if new).
  2. Navigate to the Emzor Pharmaceutical CP investment opportunity.
  3. Review details and confirm your subscription.

For inquiries, contact hello@assetbase.capital or join the AssetBase Telegram community

Conclusion

The Emzor Pharmaceutical Series 2 Commercial Paper represents a rare opportunity to invest in a leading healthcare company with proven financial performance, operational efficiency, and a trusted brand. With a 26% yield and a strong balance sheet, it’s an attractive instrument for investors seeking both returns and exposure to Nigeria’s growing pharmaceutical sector.

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