…Declares ₦690m dividend

By Chioma Obinna

One of Nigeria’s leading pharmaceutical company, May & Baker Nigeria Plc, on Thursday announced a significant 47 per cent growth in its group revenue, climbing from ₦19.7 billion in 2023 to ₦28.9 billion in 2024.

This was disclosed in the company’s annual report and financial statements for the year ended December 31, 2024.

Speaking at the company’s 74th Annual General Meeting (AGM) in Lagos, the Chairman of the Board of Directors, May & Baker Nigeria Plc, Senator Daisy Danjuma acknowledged the turbulent business climate in the country.

She highlighted “surging inflation, exchange rate volatility, and higher operating costs” as major concerns.

While the Nigerian economy saw a marginal growth from 2.45 per cent in 2023 to 3.1 per cent in 2024, Danjuma revealed that companies continued to battle stiff headwinds, particularly due to exchange rate depreciation.

“The naira closed the year at ₦1,615 to the dollar, leading to widespread exchange losses across industries.”

She explained that despite the federal government’s removal of the exchange rate subsidy, allowing the naira to float freely, “many corporates recorded losses that impacted overall tax contributions to government revenue.”

Despite these hurdles, May & Baker reported a 29 per cent growth in gross profit, from ₦6.6 billion in 2023 to ₦8.5 billion in 2024. Other operating income surged by 135 per cent, rising from ₦62.2 million to ₦146.1 million, “primarily from exchange gains.”

However, operating expenses increased in line with market realities. Distribution, selling, and marketing expenses rose by 26 per cent, from ₦2.6 billion to ₦3.3 billion, while administrative expenses saw a modest 5 per cent increase, from ₦2.7 billion to ₦2.8 billion. Finance costs also grew by 27 per cent to ₦370 million.

The company achieved a Profit Before Tax (PBT) of ₦2.6 billion, marking a 69 per cent growth over the ₦1.5 billion recorded the previous year. Tax expenses more than doubled, rising by 115 per cent, from ₦437 million in 2023 to ₦952 million in 2024, attributed to “back duty assessments and deferred tax implications.” After tax, May & Baker posted a Profit After Tax (PAT) of ₦1.6 billion, up by 50 per cent from ₦1.1 billion in 2023. Earnings per share also increased by 50 per cent, rising from 63 kobo to 94 kobo.

In recognition of this strong performance, the Board recommended a dividend of 40 kobo per 50 kobo share, translating to a total payout of ₦690.1 million, subject to applicable tax. The dividend will be paid to shareholders on the register as of May 20, 2025.

Regarding subsidiaries and joint ventures, May & Baker’s joint venture with the federal government, Biovaccines Nigeria Limited, completed its first supply order to the National Primary Healthcare Development Agency during the year.

Danjuma stated: “Although the company made a marginal profit on the transaction, deferred tax obligations led to a net loss of ₦27 million for May & Baker’s share of the venture.”

Looking ahead, Danjuma expressed optimism about the company’s future.

 “The future indeed looks very promising for our company as we continue to invest and position ourselves more strategically as a leading healthcare brand in Sub-Saharan Africa,” she affirmed.

She added that the company is “strengthening its production capabilities at its world-class pharmaceutical plant in Ota by acquiring additional machinery and equipment.”

In 2024 alone, May & Baker launched seven new products, all of which have entered the market.

 “In every challenging environment also lies opportunities for the bold,” she remarked, urging shareholders to “continue supporting management in steering the company toward sustained growth and regional leadership.”

Responding to questions from.Shareholders, the Managing Director of May & Baker Nigeria Plc, Mr. Patrick Ajah disclosed that the construction of a local vaccine production facility is “still in progress but are moving slowly due to regulatory bottlenecks and compliance issues.”

 In contrast, Ajah said the company’s subsidiary, Osworth Nigeria Limited, posted a strong performance, recording ₦2.4 billion in revenue in 2024, an 82 per cent increase from ₦1.3 billion in 2023. Osworth’s Profit After Tax also grew by 82 per cent, from ₦159 million to ₦289 million.

Ajah further stated that May & Baker is “formulating 21 new products, five of which are currently under regulatory review by the National Agency for Food and Drug Administration and Control, NAFDAC.”

Reinforcing its commitment to Sustainable Development Goals (SDGs), he said the company expanded its Corporate Social Responsibility (CSR) and community investment portfolio, focusing on health and the environment.

 “The company’s social investment spending grew by 57 per cent, rising from ₦9.4 million in 2023 to ₦14.8 million in 2024. The company is also in partnership with the National Institute for Pharmaceutical Research and Development (NIPRD), aimed at commercializing locally developed pharmaceutical innovations,” he added.