…Approves N517m dividends for stakeholders

By Prince Okafor

May & Baker Nigeria Plc, recorded significant growth in 2021 across its business segments with gross revenue growth of N4.7 billion for the period.

This growth represents a 24 per cent increase when compared to N3.8 billion recorded in 2020.

The pharmaceutical company’s Chairman, Board of Directors, Senator Daisy Danjuma, made this disclosure during the company’s Annual General Meeting yesterday in Lagos.

Sen. Danjuma noted that the company, notwithstanding the harsh economic environment in the country, put in a good performance in growth.

She stated that, May & Baker’s revenue increased by 27 percent from N9.4 billion in 2020 to N11.9 billion in 2021, while its gross profit grew by 24 percent from N3.8 billion in 2020 to N4.7 billion in 2021.

According to her, “Supply chain disruptions from Asia and the scarcity and devaluation of the Naira in the year impacted directly on the cost of input materials. Our Cost of Sales went up by 28 percent from N5.6 billion in 2020 to N7.2 billion in 2021.

“Distribution, selling and marketing expenses went up by 25 percent from N1.5 billion in 2020 to 1.8 billion in 2021. Administrative expenses rose by 27 percent – a general industry trend driven by high inflation from N968 million in 2020 to N1.2 billion in 2021.

“Finance costs jumped up by 53 percent due to the new loans from the Central Bank of Nigeria from N135 million in 2020 to N207 million in 2021. Our share of loss from the Joint Venture business with the Federal Government of Nigeria — Biovaccines Nigeria Limited amounted to N34 million in 2021 compared to the N24 million in 2020.

“We achieved a growth of 17% in profit before tax which moved from 1.2 billion in 2020 to N1.5 billion in 2021. However, a 45% spike in taxation from $284 million in 2020 to N411 million in 2021 brought our Net Profit after tax at a 9 percent growth from N65 million in 2020 to N1.05 billion in 2021. Earnings per share also grew by 9% from 55.9 kobo to 60.8 kobo.”

On the company’s dividends, Danjuma noted that, “In view of the strong performance of our company, the Directors have recommended a dividend of 30 kobo for every 50 kobo shares held of the company, representing a total dividend payout of N517,570,465.80 subject to applicable withholding tax.

“This will apply to every shareholder whose name appears in the members’ register as of 17th May, 2022.

“Our Joint Venture with the Federal Government of Nigeria for local manufacturing of vaccines has made some strides in its quest for vaccines production. Although the progress has been slow, but it has been quite significant. The groundbreaking for the construction of the vaccines factory is expected to take place by the third quarter this year (2022) and agreements have been signed with technology transfer partners.

“I want to re-assure us that our company is positioning itself to take the lead in our market and region. We shall continue to sustain the growth through strategic initiatives being put together by the management.”

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