May & Baker Posts ₦28.9bn Revenue, ₦1.6bn PAT Amid Exchange Turmoil

Despite Nigeria’s difficult macroeconomic environment in 2024, pharmaceutical company, May & Baker Nigeria Plc, has posted a 47 per cent growth in its group revenue, increasing from ₦19.7 billion in 2023 to ₦28.9 billion in 2024, according to its annual report and financial statements for the year ended 31st December 2024.

Chairman of board of directors, May & Baker Nigeria Plc, Senator Daisy Danjuma, at the company’s 74th Annual General Meeting (AGM) held in Lagos on Thursday, acknowledged the turbulent business climate in the country, marked by surging inflation, exchange rate volatility, and higher operating costs.

While the Nigerian economy grew marginally from 2.45 per cent in 2023 to 3.1 per cent in 2024, Danjuma disclosed that companies continued to face stiff headwinds, especially due to exchange rate depreciation, as the naira closed the year at ₦1,615 to the dollar, leading to widespread exchange losses across industries. She explained that although the federal government had removed the exchange rate subsidy, which allowed the naira to float freely, many corporates recorded losses that impacted overall tax contributions to government revenue.

Despite these challenges, May & Baker reported a 29 percent growth in gross profit, from ₦6.6 billion in 2023 to ₦8.5 billion in 2024. Other operating income rose by 135 percent, climbing from ₦62.2 million to ₦146.1 million, primarily from exchange gains. Operating expenses, however, increased in tandem with market realities. Distribution, selling, and marketing expenses went up by 26 percent, from ₦2.6 billion to ₦3.3 billion, while administrative expenses rose modestly by 5 percent, from ₦2.7 billion to ₦2.8 billion. Finance costs also increased by 27 percent to ₦370 million.

The company achieved a Profit Before Tax (PBT) of ₦2.6 billion, representing a 69 percent growth over the ₦1.5 billion recorded the previous year. Tax expenses more than doubled, rising by 115 percent, from ₦437 million in 2023 to ₦952 million in 2024, due to back duty assessments and deferred tax implications. After tax, May & Baker posted a Profit After Tax (PAT) of ₦1.6 billion, up by 50 percent from ₦1.1 billion in 2023. Earnings per share also increased by 50 per cent, rising from 63 kobo to 94 kobo.

In recognition of the performance, the Board recommended a dividend of 40 kobo per 50 kobo share, translating to a total payout of ₦690.1 million, subject to applicable tax. The dividend will apply to shareholders on the register as of May 20, 2025.

On subsidiaries and joint ventures, May & Baker’s joint venture with the federal government, Biovaccines Nigeria Limited, completed its first supply order to the National Primary Healthcare Development Agency during the year. “Although the company made a marginal profit on the transaction, deferred tax obligations led to a net loss of ₦27 million for May & Baker’s share of the venture,” Danjuma averred.

Looking ahead, Danjuma expressed optimism about the company’s future. “The future indeed looks very promising for our company as we continue to invest and position ourselves more strategically as a leading healthcare brand in Sub-Saharan Africa,” she said. According to her, the company is strengthening its production capabilities at its world-class pharmaceutical plant in Ota by acquiring additional machinery and equipment.

In 2024 alone, May & Baker launched seven new products, all of which have entered the market. “In every challenging environment also lies opportunities for the bold,” she said, urging shareholders to continue supporting management in steering the company toward sustained growth and regional leadership.

The company stated that the construction of a local vaccine production facility is still in progress but is moving slowly due to regulatory bottlenecks and compliance issues. In contrast, Ajah said the company’s subsidiary, Osworth Nigeria Limited, posted a strong performance, recording ₦2.4 billion in revenue in 2024, an 82 percent increase from ₦1.3 billion in 2023. Osworth’s Profit After Tax also grew by 82 percent from ₦159 million to ₦289 million.

The managing director, May & Baker Nigeria Plc, Patrick Ajah, disclosed that the company is formulating 21 new products, five of which are currently under regulatory review by National Agency for Food and Drug Administration and Control (NAFDAC).

Reinforcing its commitment to Sustainable Development Goals (SDGs), the managing director said May & Baker expanded its CSR and community investment portfolio, focusing on health and the environment. “The company’s social investment spending grew by 57 percent, rising from ₦9.4 million in 2023 to ₦14.8 million in 2024. The company is also in partnership with National Institute for Pharmaceutical Research and Development (NIPRD), aimed at commercialising locally developed pharmaceutical innovations,” he added.