May & Baker grows annual profit to N716m

May & Baker Nigeria Plc has said its profit for the 2019 financial year grew to N716.4m from N585.20m in 2018.

Its shareholders, at the Annual General Meeting held by proxy last week, approved a total dividend of N431.31m, translating to 25 kobo for every 50 kobo share compared to the 20 kobo paid in 2018, according to a statement.

The firm said the result was achieved despite a 5.5 per cent drop in revenue from N8.55bn in 2018 to N8.08bn in 2019. Its gross profit also fell from N3.16bn in 2018 to N2.91bn in 2019.

It attributed the revenue drop to the fall in consumer purchasing power, industry regulatory headwinds and unfavourable macroeconomic conditions.

The Managing Director/Chief Executive Officer, Mr Nnamdi Okafor, said the profit growth was driven by improved operating and cost efficiency as the firm made more profit per unit of sale in 2019 compared with 2018.

Its distribution expenses dropped from N1.43bn in 2018 to N1.19bn in 2019, while finance costs fell from N339.43m in 2018 to N119.14m in 2019.

Administrative expenses rose slightly to N784.29m in 2019 from N773.71m in 2018.

Speaking at the AGM, the Chairman of the Board of Directors, Senator Daisy Danjuma, expressed great hope in the future 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 future prospects,” she said.

According to her, the healthcare space in sub-Saharan Africa is still largely untapped and an investment haven for operators.

Danjuma said, “Africa’s economic prospect 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 the sub-Saharan Africa. I have immense confidence in the ability of our board and management to deliver on this goal.”

Shareholders at the AGM lauded the performance of the healthcare company and requested for early payment of the approved dividend, according to the statement.

“May & Baker Nigeria Plc has shown consistent improvement in bottom line with the optimisation of her World Health Organisation standard manufacturing facility inaugurated in 2011,” it said.

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