May & Baker returns to profitability, posts N371 million
May & Baker Nigeria Plc has recorded a Profit After Tax (PAT) of N370.87 million in its 2017 operations, against net loss after tax of N41.09 million recorded in the corresponding period in 2016.
Similarly, the company achieved 75.07 per cent rise in PBT from N345.94 million in 2016, to N605.62 million in 2017, while turnover rose by 10.39 per cent from N8.47 billion in 2016, to N9.35 billion during the period under review. Shareholders’ funds also rose by 10.3 per cent from N3.01 billion in 2016 to N3.32 billion in 2017.
The company attributed the improved performance to success of management’s efforts to harness the potential of recent investments and reduction in related costs.
The directors of the company have recommended distribution of N196 million as cash dividend for the 2017 business year, representing a dividend per share of 20 kobo.
The recommended dividend payout for 2017, represents an increase of 233.3 per cent on the payout for the 2016 business year, as the company had distributed N58.8 million as cash dividend for the 2016 business year, with shareholders receiving a dividend per share of six kobo.
The Managing Director of the company, Nnamdi Okafor, attributed the performance in 2017 to management’s efforts to harness the potential of recent investments and reduce related costs.
According to him, despite the macroeconomic challenges, the company’s sales growth has continued to improve considerably above industry average, showing continuing efforts to retain and grow market share.
He noted that the improvement in margin validated management’s tight cost control measures and continuing efforts to harness synergies within the group to reduce costs and improve shareholders’ value.
“Our results show our main focus of satisfying our customer and enhancing our shareholders’ value. Our steady implementations of many growth initiatives are paying off as can be seen in the latest results. We are also happy that the investing public is taking note of these improvements with the performance of our stock as one of the best-performing stocks at the market,” he said.
He noted that the recent inauguration of the board of Biovaccines Nigeria Limited has raised the prospects of the firm, adding that the subsidiary will soon begin to impact positively on the group performance.
He pointed out that with the company’s world-class manufacturing facility in Ota, Ogun State, growing into a hub of pharmaceutical manufacturing in West Africa, the imminent commencement of operations by Biovacccines Nigeria Limited will open up a new vista of growth for the group.
Minister of Health, Prof. Isaac Adewole recently inaugurated the board of Biovaccines Nigeria Limited in Abuja, which May & Baker Nigeria holds the majority stake of 51 per cent, while the government holds 49 per cent equity stake.
The Federal Executive Council had at its sitting on May 31, 2017, ratified a joint venture agreement between the Federal Government and May & Baker for the formation of a private company, Biovaccines Nigeria Limited to serve as a special purpose vehicle for the production of vaccines in Nigeria.
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