H1: May & Baker Nigeria Grows Profit by 179% to N264.45m

May & Baker Nigeria Plc grew its profit after tax (PAT) by 179 per cent in the first half of the ended June 30, 2018, thereby sustaining a strong growth trend that saw the company increase dividend payout by 233 per cent for the 2017.

The unaudited results of the company showed that total comprehensive incomewhich includes PAT and extra ordinary income rose to N601.37 million in first half 2018 as against N94.86 million recorded in the comparable period of 2017. The 534 per cent increase in net distributable earnings has raised strong prospect of possible significant increase in dividend payout to shareholders.

Pre-tax profit margin-which measures average pre-tax profit per unit of sale and serves as benchmark for profitability of the company, tripled from 3.13 per cent in first half 2017 to 8.44 per cent in first half 2018. Gross profit margin had increased from 30 per cent in first half 2017 to 33 per cent in first half 2018 while operating margin also grew to 12.7 per cent in 2018 as against 10.11 per cent recorded in corresponding period of 2017.

The report showed that group’s profit before tax rose by 178.76 per cent to N388.90 million in first half 2018 as against N139.51 million recorded in comparable period of 2017. Profit after tax jumped by 178.78 per cent from N94.86 million to N264.45 million.

Managing Director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor, said It is noteworthy that the company achieved higher turnover in 2018 despite the discontinuation of a significant arm of its business responsible for about 20 per cent of turnover in 2017.

According to him, this performance, has, again demonstrated the long-term sustainability of the company’s growth strategy and the continuing efficiency of its world-class pharmaceutical manufacturing complex in Ota, Ogun State.

“Our many growth initiatives are paying off and we are happy that the results have proved us right. With improvement in macroeconomic environment, we will continue to improve on our performance with a view to creating greater value for our shareholders,” Okafor said.

He noted that the impending commencement of operations of Biovaccines Nigeria Limited and ongoing efforts to turn the company’s world-class manufacturing facility in Ota, Ogun State, into a hub of pharmaceutical manufacturing in West Africa hold great prospects for the group.

Okafor said the company remains focused on improving its financial structure through injection of additional equity funds adding that stronger balance sheet and streamlining the company’s activities along its core area of healthcare will put it in a position to deliver higher profits in the future.