May &Baker records 27% revenue growth amid headwinds

For the business year ended December 31, 2021, May &Baker Nigeria Plc, a leading drug manufacturer grew its revenue by 27percent to N11.9billion from N9.4 billion recorded in the previous year.

Despite the impact of FX volatility, worsening power supply, and supply chain disruptions on its business operations, the company recorded a net operating profit after tax of N1.05 billion, up 9 percent from N965 million recorded in 2020.

The drug manufacturer struggled to keep costs down as sales costs went up 28 percent to N7.2 billion in 2021 compared to N5.6 billion in 2020. Also, its finance cost jumped by 53percent to N207million in 2021 owing to new loans from the Central Bank of Nigeria from N135million in 2020.

Gross profit grew by 24 percent to N4.7billion from N3.8 billion in the full year of 2020. Administrative expenses also jumped 27 percent to N1.2 billion from N968 million in 2020, the company attributed the increase to accelerating inflation in the country.

The company’s result shows impressive growth in its performance and also reflects its resilience and nimbleness.

“Businesses still had to contend with the scarcity of dollars for importation and a fear of impending further devaluation for the naira which moved from N415/USD in January 2021 to N449/USD in December 2021. An 8percent devaluation of official CBN spot rate for settlement of Form Ms,” said Daisy Danjuma, chairman, board of directors, May &Baker during the company’s 71st annual meeting.

Speaking on the healthcare sector in 2021, Danjuma said the pandemic presented big opportunities for the healthcare sector and major pharmaceutical companies in the country took advantage and responded with the introduction of new products, fresh investments to boost local manufacturing capacity.

May &Baker recorded a share loss of N34million in 2021 from the joint venture business with the federal government – Biovaccines Nigeria Limited compared to N24 million in 2020.

Earnings per share rose by 9 percent to 60.8kobo per share in 2021 from 55.9kobo per share in 2020. Tax expense jumped 45 percent to N411 million in 2021 from N284 million in 2020.

May and Baker Nigeria proposed a final dividend of 30 Kobo for every 50 kobo shares held, representing a total dividend payout of N517.6million, subject to appropriate withholding tax.