May & Baker, a pharmaceutical firm operating in Nigeria recorded a 42 percent jump in profit after tax to N1.5 billion in 2022 from N1.05 billion in 2021.
The firm’s profit before tax stood at N2.08 billion in 2022, a 42.4 percent increase from N1.46 billion in 2021.
“The poor state of the local economy and the Covid-19 pandemic gave more healthcare workers a higher motive to move to western countries in search of greener pastures putting more strain on the local companies to manage with high attrition of skilled labour,” said Daisy Danjuma, chairman, board of directors at May & Baker’s 72nd annual general meeting.
The firm’s revenue grew 20 percent to N14.33 billion in 2022 from N11.9 billion in 2021 which is driven by the pharmaceuticals segment (99.8%) and beverage segment (0.2%).
Further analysis revealed that May & Baker pharmaceuticals segment revenue grew 20 percent to N14.3 billion in 2022 from N11.9 billion in 2021 while beverage revenue dropped 20.9 percent to N26.5 million from N33.5 million in the revealed period.
Patrick Ajah, managing director and CEO of May & Baker Nigeria said in his welcome address at the company’s 2023 customers’ forum that the company has set itself to deliver a revenue of N20 billion which is a higher target for 2023.
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“To give ourselves a greater chance of meeting this target, we recently made some changes in our field management structure to ensure a better focus of our National and District sales managers, and I am sure we have already started seeing the difference,” Ajah said.
The firm’s other operating income arrived at N1.69 billion from another operating loss of N98.99 million driven mainly by profit on disposal of PPE which amounted to N1.2 billion and an exchange gain of N458.9 million.
Cash and cash equivalents grew to N3 billion in 2022, an 11 percent increase from N2.7 billion driven mainly by positive cash flows from May & Baker’s net cash from operating activities and net cash used in investing activities during the period.
The movement in the firm’s cash and cash equivalents showed net cash from operating activities amounted to a positive N1.9 billion in 2022 from a negative N2.3 billion in 2021, on the back of cash received from customers which was N14.8 billion.
Furthermore, net cash used in investing activities was at a positive of N198.2 million from a negative of N486.5 million driven by proceeds from the sale of fixed assets.
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