May & Baker Posts Group Revenue Of N19.7bn In 2023

In spite of the tough challenges facing businesses in Nigeria, May & Baker Nigeria Plc, a leading pharmaceutical manufacturer in Nigeria, has posted its group revenue of N19.7 billion in 2023, representing a growth of 37 per cent, when compared to N14.3 billion posted in 2022.

The chairman, board of directors, May & Baker Nigeria Plc, senator Daisy Danjuma, disclosed this, at the company’s 2024 Annual General Meeting/Lily water Commissioning, on Thursday, in Lagos.

The gross profit grew by 70 per cent from N3.9 billion in 2022 to N6.8 billion in 2023; other operating income dropped significantly from N1.6 billion in 2022 to N62.2 million in 2023, Danjuma revealed, adding that 2022 was boosted by gains of N1.2 billion made from sale of asset.

“Distribution, selling and marketing expenses grew by 19 per cent from N2.1 billion in 2022 to N2.6 billion in 2023 to drive revenue; while administrative expenses grew by a whopping 119 per cent from N1.2 billion in 2022 to N2.7 billion in 2023. N1.1 billion out of the figure above came from foreign exchange losses due to the depreciation in the value of the Naira versus the dollar,” the senator stated.

On financial cost, Danjuma said financial cost was flat year on year moving from N286 million in 2022 to N290 million in 2023 while finance income grew by 66 per cent from N231 million in 2022 to N384 million in 2023.

She disclosed that Biovaccines Nigeria Limited, May & Baker’s joint venture business with the federal government of Nigeria contributed N57 million as its share of the company’s profit. “Biovaccines Nigeria Limited started commercial operations in 2023 and made a marginal profit, largely from tax credit recoupable from past losses,” Danjuma explained.

On Profit Before Tax (PBT), the chairman disclosed that the group’s PBT of N1.5 billion, down by 27 per cent from the previous year figure of N2.1 billion in 2022, adding that, “This drop in profit is majorly coming from the impact of the foreign exchange loss incurred in the year. Tax for the year dropped by 27 per cent to N436.5 million in 2023 from N593.6 million in 2022. This brought our net profit after tax to N1.1 billion, down 27 per cent from N1.5 billion in 2022 while earnings per share recorded the same drop of 27 per cent from 86kobo/share in 2022 to 63 kobo/share in 2023.”

In view of the relatively strong performance of the company, the chairman disclosed that the directors have recommended a dividend of 30 kobo for every 50 kobo share held in the company representing a total dividend payout of N517,570,465.80K subject to the applicable tax.

This will apply to every shareholder whose name appears in the register of members as at the close of business on 21 May 2024, she added.

Looking at the future, Danjuma disclosed that the company will continue to invest more in expanding its production capacity in the Pharma Centre at Ota, adding that its water business Lily table water is now producing.

“Indeed the short and mid-term future looks very bright despite the harsh economic environment and we shall continue to support and encourage the management to lead the company to greater heights and to take its rightful position in our market and region,” she assured.