May & Baker Records N10.3bn Profit In 2022

The total revenue of May& Baker Nigeria Plc grew to N10 billion between January and September, 2022, despite the economic and environmental uncertainties in the country.

This figure represents 27 per cent rise, compared to N8.1 billion recorded in 2021.

The company’s Profit Before Tax (PBT) grew from N1.3 billion from January to September, 2021 to N1.7 billion in 2022, representing about 31 per cent growth. Working capital also grew from N5.3 billion to N6.5 billion, representing about 23 per cent growth, in the year under review.

The managing director and chief executive officer, Mr. Patrick Ajah, May & Baker Nigeria Plc, at the company’s end of year media parley in Lagos, said, Nigeria is currently faced with multiple challenges from spiraling inflation, escalating energy and commodity prices; scarcity of foreign exchange; insecurity; dwindling value of the naira; stuttering education system; skyrocketing debt profile; depleting foreign reserve; scarcity of fuel and rising fuel prices.

As gloomy as the above picture may seem, Ajah said, May & Baker has continued to grow its business, while attributing its encouraging performance to the company’s

commitment to quality and unwavering zeal to make its products affordable, adherence to compliance, manufacturing excellence, strong supply chain capabilities and the unwavering support of its board of Directors.

The CEO, however, disclosed that the company’s PBT was severely impacted by the significant increase in cost of goods and other operating costs.

“While revenue was growing at 27 per cent, cost of goods was growing at 47 per cent on the average and the cost of paracetamol API has doubled since last year.

“Other operating expenses grew by about 30 per cent driven mostly by power which on its own was growing at more than 50 per cent and even worse during gas outages. We were able to mitigate some of these costs with some marginal price increases, operational efficiencies driven by increasing volumes and better production planning and of course the reduction in admin expenses,” he pointed out.

Speaking on the company’s top priorities for 2023, Ajah said, May & Baker is in the process of completing and commissioning its new Multi-Million Naira, Lily Water factory and have procured state of the art water bottling and purification machines that will enhance top notch production and packaging of bottled water from next year. “We will also be making significant investments in new machines for our Paracetamol plant and the Pharmacentre to ensure we are able to meet our growing demands both for new and existing products,” he added.

On its joint venture with federal government of Nigeria Biovarcines, the CEO said, the Federal Executive Council (FEC) has approved the first part of the MOU of Biovarcines with the federal ministry of health for supply of routine immunisation vaccines, adding that, this is the first step towards vaccine production in Nigeria, as this allows Biovaccines to commence the engagement with the chosen Technology transfer partners and subsequently initiate the design and construction of the greenfield project.

“We are optimistic that the groundbreaking ceremony for the vaccine production facility will happen before Q2 of 2023 and we will keep you all well informed on the dates progress of events,” Ajah revealed.