9M: May & Baker Nigeria Grows Profit by 44% to N1bn

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By Goddy Egene

One of Nigeria’s pharmaceutical companies, May & Baker Nigeria Plc, has announced its nine months results for the period ended September 30, 2020, showing impressive growth in profitability as well as balance sheet.

Despite the lockdowns and disruptions caused by COVID-19 pandemic and other macroeconomic headwinds, May & Baker Nigeria Plc’s sales rose 8.8 per cent to N6.44 billion in 2020, as against N5.92 billion recorded in 2019. While cost of sales dropped marginally from N3.75 billion to N3.74 billion, gross profit rose by 24.7 per cent from N2.16 billion to N2.70 billion.
Its profit before tax jumped by 44 per cent to N1.003 billion in 2020, compared with N696.4 million in 2019. Profit after tax grew by 43.9 per cent from N473.60 million to N681.70 million. Underlying profitability ratios showed a general improvement in the profitability of the company and value creation for investors.

Commenting on the results, Managing Director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor, said the performance showed the resilience of the business strategy of the group in spite of the uncertainties and decline occasioned by COVID-19 pandemic.

He noted that continuing growth in sales underscored the increasing market shares of many key products and the success of the company’s marketing and distribution strategies.

According to him, the company’s investments in research, operations and production have put it in strong position to maintain leadership in the primary Nigerian market and to consolidate its expansion across neighbouring countries in line with its vision of being the dominant pharmaceutical brand in Sub Saharan Africa (SSA).

“We are delighted with the performance so far this year, and we are hopeful to sustain this. Given the general difficulties and uncertainties in the operating environment, our results are encouraging. Our shareholders are seeing the results of our perseverance,” Okafor said.

While calling on the Federal Government to consider the domestic healthcare industry in its policy formulations, Okafor assured stakeholders that May & Baker Nigeria will leverage its almost eight decades of operations and state-of-the-art facilities to take advantage of the emerging opportunities from the Africa Continental Free Trade Agreement (AfCFTA).

Meanwhile, the stock market started the month of December with growth of 0.30 per cent as the Nigerian Stock Exchange (NSE) All-Share Index rose to 35,147.62.