May & Baker restrategises to enhance profitability, growth
May & Baker Nigeria Plc has unfolded plans to expand its business frontiers as it seeks new opportunities that will improve its performance and increase shareholders’ value.
Speaking at the company’s yearly general meeting held in Lagos at the weekend, the Chairman of the company, Lt. Gen. Theophilus Danjuma (Rtd), told shareholders that with its existing businesses showing resilience and the continuing operational efficiency of its World Health Organisation (WHO)-certified pharmaceutical complex in Ota, the firm is shifting focus to acquire new competences and expand its business into new profitable ventures.
“In the years ahead, our plan is to acquire necessary competences in new business areas and seek opportunities that will add value to our investments. At the same time we shall continue to leverage our installed capacity at the pharmaceutical facility in Ota.
“We would energies the food and beverages businesses by promoting existing brands and introducing new ones. May & Baker has a great pedigree but the future is even more alluring as we make new strides and break new grounds,” Danjuma said.
He explained that the company had delayed its capital raising in order to extract the greatest value for the existing shareholders that had toiled to build the company and to ensure that new equity investments are in line with the strategic vision of future expansion and technical competencies.
According to him, the board had in the interest of all the shareholders decided not to go for financial investments, but to look for investors that can offer technology that will help the company to better leverage its Pharmacentre investment.
“This way we shall secure both funding and technology competencies to delve into new areas,” Danjuma said.
He said the company has restarted discussions with the present administration on the joint venture business for local vaccine production, noting that the signals from the discussions indicate that government is positive on the local production.
He added that the revised joint venture agreement will soon be ratified by the Federal Executive Council.
“We have absolute confidence in this project and that explains why we have not given up on it through these many years of delay. The need to produce vaccine in Nigeria has become even more imperative because the major foreign donor agency for vaccine, Global Alliance for Vaccines and Immunizations (GAVI) has indicated its desire to withdraw sponsorship by 2022. This leaves local vaccine production as the only sustainable avenue to keep our population secure from immunizable diseases,” he said.
He noted that the performance of the company in 2015, in spite of the challenges in the economy, showed that it has continued to be resilient and focused on creating values for shareholders.