The revenue of drug maker, May & Baker, dropped 38.05 percent to N5.91billion in the third quarter of 2019 from N6.54bn in the corresponding period of 2018.
The company’s cost of sales reduced 9.63percent to N3.75bn from N4.15bn, while its distribution, sales, and marketing expenses stood at N756.56m from N978.61m, administrative expenses surged to N626.07m from N536.98, net profit stood at N473.57m from N414.75m.
Revenue from its pharmaceutical segment, which is involved in the production and sale of human pharmaceuticals and human vaccines, dropped to N5.85bn from N6.39bn in 2018. Revenue from its beverage segment, involved in the production of beverage drinks including bottled water stood at N56.79m from N52.02m.
May & Baker decided to sell off its food line (Production of Noodles) to Dufil Nigeria Limited for ₦775m. The 100percent acquisition was finalised earlier in the year following the fulfillment of all necessary conditions, which include gaining the approval of companies’ Boards of Directors, their respective shareholders, and the Nigerian Stock Exchange.
The company announced the appointment of Daisy Ehanire Danjuma as the new chairman after the retirement of erstwhile chairman, T.Y. Danjuma.
Read also: May & Baker appoints Daisy Danjuma board chairman as TY Danjuma retires
It realised N1.86 billion from the just-concluded rights issue which was 76.04 percent successful. Managing Director/CEO, May & Baker, Nnamdi Okafor, said the rights issue would further help to reduce finance costs, increase capacity and bring greater returns to shareholders.
Okafor noted that the net proceeds of the rights issue will be invested in some key projects including N400 million to finance part of the company’s equity in Biovaccines Nigeria Limited, the joint venture company for local vaccine production and over N500 million on capacity expansion for one of its cash cow products, paracetamol for which it is building a dedicated plant.
He added that the company will also use N400 million to offset part of its current loan portfolio of N950 million while N500 million will be invested in marketing and brand building.
The company in April 2007, entered into a Joint Venture with the Federal Government to engage in the business of production, sale, and distribution of human vaccines.
Under the arrangement, May & Baker is to have 51percent interest in the Company by injecting N520 million in the entity while the Federal Government is to have 49percentAnd as at the 2017 financial year, the Company has only injected a 44percent of the total investment cost due to them into the company.
It also recently signed an agreement with the National Institute for Pharmaceutical Research Development (NIPRD) for the commercial production of NAPRISAN, an anti-sickle cell medication.
