May& Baker Nigeria Plc has assured shareholders that the company has embarked on new investments that would boost performance, shareholders’ value and profitability.
Chairman of the company, Daisy Danjuma, while speaking at the company’s 72nd yearly general meeting in Lagos, said the firm is raising its investment to increase production capacity for the pharmaceutical industry.
She also disclosed that the firm is about to revive its Lily Table Water with its new water bottling factory located at Ota near completion.
Danjuma stated that the short to medium-term outlook of the company was promising and that the management was poised to restore the firm to the path of sustainable growth to take its rightful position in the industry.
The company’s revenue rose from N11.9 billion in 2021 to N14.3 billion in 2022, representing 20 per cent growth. However, its gross profit dropped by 18 per cent to N3.9 billion from N4.7 billion achieved in the corresponding period in 2021.
Danjuma attributed the drop to high energy cost, rise in input materials imported from Asia and depreciation of naira. She said economic challenges have negatively impacted the cost of sales, which grew by 45 per cent from N7.2 billion in 2021 to N10.5 billion in 2022.
The company’s distribution, selling and marketing expenses increased by 19 per cent to N2.1 billion from N1.8 billion recorded in 2021 while administrative expenses rose marginally by one per cent, from N1.22 billion to N1.24 billion.
Shareholders at the meeting approved a dividend of 30 kobo for the 2022 financial year.
This will apply to every shareholder whose name appears in the register of members as of the close of business on May 16, 2023.
She said Biovaccines Nigeria Limited, the firm’s joint venture with the Federal government for local manufacturing of vaccines is still ongoing, was on course.
However, she added that due to the political campaign for change in government, its activities were slow.
“We could not achieve the groundbreaking for the construction of the vaccines factory last year but we hope that will happen this year after the new administration has settled down and formed a new executive cabinet,” she said.
She added its subsidiary, Osworth Nigeria Limited, posted revenue of N892 million up from N878 million posted in 2021 while profit after tax dropped by 77 per cent, from N171.7 million to N39 million.
The Managing Director, Patrick Ajah, appreciated the chairman for the support, promising the company “has a very bright future” and that the shareholders’ value would continue to increase.
