Monday, June 15, 2020 / 3:03 PM / May & Baker / Header Image Credit: THISDAYLIVE
May & Baker Nigeria Plc. grew her net profit by 109% in 2019 business year from N342.7 million in 2018 to N716.4 million in 2019. Following this sterling performance, the shareholders at their Annual General Meeting (AGM) held by proxy last week approved a total dividend of N431, 308,721.50 translating to 25 kobo for every 50 kobo share held of the company, a 25% increase against 20 kobo paid by the company for the 2018 business year.
This result was achieved despite a 5.5% drop in revenue from N8.552 billion in 2018 to N8.080 billion in 2019, a general industry trend resulting from a decline in consumer purchasing power, industry regulatory headwinds and unfavourable macroeconomic conditions. Gross profit also slipped down from N3.2 billion in 2018 to N2.9 billion in 2019 in line with revenue drop and the rising cost of input materials.
According to Mr. Nnamdi Okafor, Managing Director/CEO, the profit growth was driven by improved operating and cost efficiency as the company made more profit per unit of the sale in 2019 compared with 2018. Distribution expenses came down from N1.434 billion in 2018 to N1.197 billion in 2019. Finance costs also came down by 290% from N339.4 million in 2018 to N114.14 million in 2019 as it was able to put the Rights proceeds received in 2019 to judicious use.
Administrative cost slightly increased to N784.3 million in 2019 from N773.7 million in 2018. Investments in a dedicated plant for her key product also gave the company fresh capital allowance and deferred tax, thus dropping tax exposure drastically from N475.2 million the previous year to N184.5 million in 2019.
May & Baker Nigeria Plc. has shown improvement in the bottom line with the optimization of its World Health Organisation (WHO) standard manufacturing facility commissioned in 2011. Similarly, her key products continue to make steady inroads in the Sub-Saharan Africa healthcare market.
Speaking at the 69th AGM, Chairman of the Board of Directors, Senator Daisy Danjuma expressed great hope in the prospects of the company. "I see a great future for our company. The attraction of May & Baker as an investment haven lies not only in her long track record of robust performance but more in her prospects." She said the healthcare market in sub-Saharan Africa (SSA) is still largely untapped, "Africa's economic prospects sparks an enthusiasm about opportunities, especially in its healthcare sector. Capturing that promise is the task we must set out to accomplish. Our recipe for success lies in the burning ambition to dominate our defined markets; Nigeria and Sub-Saharan Africa. I have immense confidence in the ability of our board and management to deliver on this goal."
In the wake of the Corona Virus pandemic, May & Baker led the support for the management of the disease in the West African sub-region by supplying both chloroquine and placebo tablets required for clinical trials to both the Economic Community of West African States (ECOWAS) and the Lagos State Government.