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Shareholders commend May & Baker vaccine production

.Okay 6 kobo dividend

SHAREHOLDERS of May   & Baker Nigeria Plc have commended its Board of Directors for the remarkable achievement in resuming the manufacture of vaccines in the country as Nigeria’s Federal Executive Council had ratified the 12-year old agreement between it and the company.

The shareholders also commended the Board for an improved financial performance and declaring dividend despite the harsh operating environment.

Managing Director/CEO of May & Baker Nigeria Plc, Mr. Nnamdi Okafor, who announced the good news while addressing shareholders at the 66th annual general meeting of the company held in Lagos said “with the action of the Federal Executive Council (FEC), the partners will immediately take steps to reconstitute the board of Biovaccines Nigeria Limited, the company set up for the purpose of vaccine manufacturing in Nigeria through the May & Baker partnership with the Federal Government.”

In 2005, May & Baker entered into a joint venture with the Federal government to take over the facilities of the Federal Vaccine Production Laboratory (FVPL) in Yaba for the purpose of resuming vaccine production which had stopped due to the inability of the FVPL to cope with operational challenges. The project was however delayed due to the non ratification of the agreement by successive governments.

Chief Boniface Okezie, Chairman, Progressive Shareholders Association, said the investment in local vaccine production will certainly multiply the turnover and profitability of May & Baker. He commended the management of the company for remaining resolute on the local vaccine project despite the long delays in its realization.

Commenting on the performance of the company, Chief Timothy Adesiyan, president, Nigerian Shareholders Solidarity Association, said May & Baker has kept its year end financial performance very impressive despite harsh operating environment. He said the addition of vaccine into the business of the company will lead to astronomical growth in earnings. He commended the company for being consistent in declaring dividends.

May & Baker increased its turnover in the 2016 financial year by 12 per cent, to N8.5 billion in 2016.   Profit before tax grew by 143 per cent to N346 million. Deferred taxation and back duty taxes however whittled down the bottom-line to a net loss of N41 million.

The company declared dividend of 6 kobo for every 50 kobo share. The management attributed the impressive performance to cost optimization measures which reduced distribution, sales and marketing expenses by 11 per cent, finance costs by 12 per cent and administrative costs by 6 per cent.


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