May & Baker Nigeria Posts N41bn Revenue, N427m Profit in Six Months

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Goddy Egene

May & Baker Nigeria Plc has recorded a revenue of N4.06 billion in first half of 2019 as against N4.61 billion in first half of 2018. Profit before tax rose to N427.69 million in first half of 2019 compared with N388.90 million in first half 2018. Profit after tax also rose from N264.45 million to N290.83 million.

May Baker reduced finance costs, which had been a major drag on the bottom-line, by 47.5 per cent from N388.90 million in first half 2018 to N109.93 million in first half 2019.

The balance sheet of the company emerged stronger with improved liquidity and capacity to sustain the company’s long-term growth plan. Total assets rose by 47.55 per cent to N10.55 billion in first half 2019 as against N7.15 billion recorded in first half 2018. Non-current assets had grown by 30.16 per cent from N3.68 billion to N4.79 billion while current assets had increased by 65.99 per cent from N3.47 billion to N5.76 billion. Shareholders’ funds grew by 45.4 per cent from N3.70 billion to N5.38 billion. The company had recently successfully raised N1.86 billion through a rights issue

Commenting on the results, Managing Director, May & Baker Nigeria, Mr. Nnamdi Okafor said the company had continued to show resilience, noting that the revenue decline was due to the discontinuation of some key products in compliance with industry-wide regulatory directives and the sale of the noodles business.

He disclosed that the company invested the net proceeds from the recent rights issue to reducing its short-term debt which had helped to reduce its finance cost burden and building a dedicated plant for one of its major products and additional capital injection in Biovaccines Nigeria Limited, its joint venture with the federal government for the production of vaccines.

He said aggressive marketing and expected expansion of the company’s product portfolio from the recent strategic investments would ensure steady growth in the top-line in the years ahead.

He noted that the company was investing in a number of new pharma, nutraceutical and herbal products that will help to diversify revenue base.

“We remain focused on our growth plan to become a regional healthcare hub with strong and wide footprints in the sub Saharan market. We now have a stronger base for growth and our shareholders should expect improved performance in the period ahead,” Okafor said.