Stock & Analyst Updates | |
Stock & Analyst Updates | |
656 VIEWS | |
![]() |
Wednesday, December 02, 2020 / 11:17 AM /
May & Baker / Header Image Credit: Nairametrics
Nigeria's leading pharmaceutical company,
May & Baker Nigeria Plc recorded impressive well-rounded performance in the
third quarter as improving sales combined with increasingly efficient internal
cost management to lift the bottom-line by 44%.
Key highlights of the interim report and
accounts of May & Baker Nigeria Plc for the nine months ended September 30,
2020, submitted at the Nigerian Stock Exchange (NSE) showed impressive growths
in profitability as well as the balance sheet. The actual growth in profit and
loss figures was supported by considerable improvements in underlying
profitability and returns ratios.
Despite the lockdowns and disruptions
caused by the COVID-19 pandemic and other macroeconomic headwinds, total sales
rose by 8.8% to N6.44 billion in third-quarter 2020 as against N5.92 billion
recorded in Q3 2019. While the cost of sales dropped marginally from N3.75
billion to N3.74 billion, gross profit rose by 24.7% from N2.16 billion to
N2.70 billion.
Profit before tax jumped by 44% to cross
the billion naira mark to N1.003 billion in third-quarter 2020 as against
N696.4 million in third quarter 2019. After taxes, net profit also grew by
43.9% from N473.60 million to N681.70 million. Basic earnings per share
expectedly rose by 44% from 27.45 kobo in Q3 2019 to 39.52 kobo in Q3 2020.
Underlying profitability ratios showed a
general improvement in the profitability of the company and value creation for
investors. Gross profit margin rose by more than five percentage points to
41.9% in the third quarter of 2020 as against 36.6% in Q3 2019. The pre-tax
profit margin also rose from 11.8% to 15.6%.
Return on equity increased from 8.5% to
11.1% while the return on total assets stood at 7.2% as against 7.3%. Total
assets had grown by 44.9% from N9.58 billion in Q3 2019 to N13.88 billion in Q3
2020. While the company's paid-up share capital remained unchanged at N862.62
million, shareholders' funds rose by 10.2% to N6.12 billion in Q3 2020 as
against N5.56 billion in Q3 2019.
Managing Director, May & Baker Nigeria
Plc, Mr. Nnamdi Okafor, said the Q3 results showed the resilience of the
business strategy of the group despite the uncertainties and decline occasioned
by the COVID-19 pandemic.
He noted that continuing growth in sales
underscored the increasing market shares of many key products and the success
of the company's marketing and distribution strategies.
He said the company's investments in
research, operations and production have put it in a strong position to
maintain leadership in the primary Nigerian market and to consolidate its
expansion across neighbouring countries in line with its vision of being the
dominant pharmaceutical brand in Sub Saharan Africa (SSA).
"We are delighted with the performance so
far this year, and we are hopeful to sustain this. Given the general
difficulties and uncertainties in the operating environment, our results are encouraging.
Our shareholders are seeing the results of our perseverance," Okafor said.
While calling on the Federal Government to
consider the domestic healthcare industry in its policy formulations, Okafor
assured that May & Baker Nigeria will leverage its almost eight decades of
operations and state-of-the-art facilities to take advantage of the emerging
opportunities from the Africa Continental Free Trade Agreement (AfCFTA).
He said the company has continued its
quest to diversify income sources and broaden its operations base by optimizing
its World Health Organisation (WHO)-certified pharmaceutical manufacturing
complex through domestic and global partnerships as well as contract
manufacturing.
He assured shareholders that the company
is on a strong footing to sustain good returns on their investments.
Related News
1. MAYBAKER Appoints Mr. Patrick
Ajah as Managing Director; Mr. Nnamdi Okafor to Retire
2. May and Baker
Launches Malact to Combat Malaria...
3. MAYBAKER
Declares N682m PAT in Q3 2020 Results SP N3.20k ...
4. MAYBAKER
Declares N439m PAT in Q2 2020 Results SP N2.90k ...
5. MAYBAKER
Notifies of Resolutions Passed At Its 69th AGM...
6. MAYBAKER Declares
N42.8m PAT in Q1 2020 Results SP N2.87k ...
7. May
and Baker Records Net Profit Growth Of 109 In FY 2019...
8. MAYBAKER Declares N629m PAT in Q4 Unaudited 2019
Results SP N2.02k ...
9. MAYBAKER Notifies of Contract Manufacturing
Agreement with Sanofi Nigeria Limited
10. MAYBAKER 9M 2019: Margins Improve Despite
Revenue Contraction
11. MAYBAKER Declares N473.577m PAT in Q3 2019
Results,(SP:N2.00k)
12. MAYBAKER Declares N473.577m PAT in Q3 2019
Results,(SP:N2.00k)
13. MAYBAKER Declares N290.83m PAT in Q2 2019
Results,(SP:N2.00k)
14. MAYBAKER Notifies of Notifies of Late Filing of the
Company's Q2 2019 Financial