BusinessDay
NigeriaDecides2023

May & Baker posts profits of N1.4bn, highest in seven years

May & Baker, a manufacturer, and distributor of pharmaceutical products in its recently released nine-month financial results for the period ended September 2022 has reported a 62 percent increase in profit to N1.43 billion from N882.4 million in the corresponding period of 2021, the highest reported in seven (7) years.

According to BusinessDay’s findings, profit reported by the pharmaceutical company was driven mainly by the pharmaceuticals revenue generating segment which contributed N2.82 billion to the profit before tax reported in the period, while other operating income, interest income, and beverages revenue segments contributed N1.46 billion, N87.4 million, N5.9 million respectively.

Revenue climbed 28.3 percent to N10.34 billion in the nine-month of 2022 from N8.06 billion in the nine-month of 2021.

May & Baker’s revenue entails the pharmaceuticals and beverage segment which contributed N10.32 billion and N23.1 million respectively.

The pharmaceuticals segment involved in the production and sale of human medicines and human vaccines increased to N10.32 billion in September 2022, up 28.3 percent from N8.04 billion in September 2021.

The beverage segment involved in the production of beverage drinks including bottled water recorded a 2 percent drop to N23.1 million in September 2022 from N22.6 million in September 2021.

Income on contract manufacturing increased by 80.6 percent to N2 million in September 2022 from N10.3 million in September 2021.

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The firm’s distribution, sales, and marketing expenses reached N1.52 billion, up 17 percent from N1.3 billion in the comparable period.

Administrative expenses rose by 10.3 percent to N852 million in the nine-month of 2022 from N772.5 million in the same period of 2021.

Operating profit climbed 27 percent to N1.91 billion in the nine-month of 2022 from N1.5 billion in the nine-month of 2021.

Total assets jumped to N18.4 billion in the nine-month of 2022, a 15 percent increase from N16 billion in the nine-month of 2021.

Inventories climbed to N4.4 billion in the nine-month of 2022, up 57 percent from N2.8 billion in the nine-month of 2021.

The exchange gain recorded stood at N237 million in September 2022 from an exchange loss worth N174.3 million in September 2021.

May & Baker’s borrowings jumped to N2.5 billion, a 25 percent increase from N2 billion in the comparable period.

Net cash from operating activities recorded a positive N329 million from a negative of N1.9 billion.

Net cash used in investing activities recorded a positive of N402.5 million from a negative of N346.34 million in the period under review.

Net cash used in financing activities dropped to a positive of N27.8 million from a positive of N1.32 billion in the comparable period.

Cash and cash equivalents increased to N3.5 billion, up 16 percent from N3 billion in the period reviewed.

Basic earnings per share from continuing operations increased to N82.90 in the nine months of this year from N51.15 in the nine-month of 2021.