…As shareholders get N867m dividend

By Chioma Obinna

Despite the harsh operating environment, rising energy costs and persistent pressure on manufacturers in the country, May & Baker Nigeria Plc, posted a gross profit of N13.147 billion in the financial year ended December 31, 2025, representing an increase by 54.4% from N8.513 trillion recorded in the corresponding period 2024.

The Company’s Profit Before Tax, PBT also grew by 154.2 % to N6.539 billion in 2025 from N2.572 billion in 2024.

Speaking at the company’s 75th Annual General Meeting (AGM) in Lagos, the Chairman of May & Baker Nigeria Plc, Senator Daisy Danjuma, said the company remained resilient even as several multinational pharmaceutical firms exited Nigeria due to foreign exchange instability and rising operational costs.

“Our Gross profit grew by 54.4% to N13.147 billion in 2025, from N8.513 billion in 2024 while the PBT grew by 154.2% in 2025 to N6.539 billion from N2.572 billion in 2024” Danjuma stated.

She announced that the board recommended a dividend of 50 kobo for every 50 kobo ordinary share held by shareholders, amounting to a total payout of N866.7 million.

“It is my pleasure to inform you that in view of the reasonably strong performance of our company, the directors have recommended a dividend of 50 Kobo for every 50 Kobo share held in the company,” she said.

The chairman described May & Baker as one of the most trusted pharmaceutical brands in Nigeria, noting that the company had sustained its reputation since its establishment in 1944 as the first pharmaceutical company in West Africa.

“May & Baker is a household name. Nigerians trust our products because of the quality we have maintained over the years,” she said.

She however lamented the difficult business environment, especially rising energy costs, poor infrastructure and forex challenges.

“For pharmaceutical companies to survive, there must be stable power supply. Companies spend huge amounts on generators, diesel and alternative energy sources just to keep production lines running,” Danjuma added.

Also speaking, the Managing Director/Chief Executive Officer of the company, Patrick Ajah, disclosed that exchange rate stability over the past year helped manufacturers plan more effectively compared to previous years marked by severe volatility.

“The major problem is usually instability because it forces manufacturers to keep changing prices. Last year, the exchange rate remained relatively stable at about N1,400 to the dollar, and that helped businesses to plan better,” Ajah said.

Ajah revealed that the company invested heavily in expanding production capacity due to surging demand for some of its products, including bottled water and paracetamol.

“We acquired new machines to increase production capacity. Even after purchasing several machines, demand continues to exceed supply, so we are buying more equipment,” he stated.

He further disclosed that May & Baker plans major investments in new facilities between 2026 and 2027 as part of efforts to strengthen its market position.

On expansion across Africa under the African Continental Free Trade Area (AfCFTA), Ajah said the company was already exploring opportunities in other African countries.

According to him, the government of the Benin Republic had invited the company to establish a manufacturing facility in its free trade zone.

“The President sent his aide to invite us to establish a factory in their free trade zone. We are still evaluating the proposal because any investment decision must guarantee good returns for shareholders,” he explained.

Ajah also revealed that rising energy costs had significantly increased operational expenses for the company.

“Our monthly energy costs have increased from about N100 million to nearly N170 million,” he disclosed.
He said the company was currently considering solar energy integration to reduce dependence on diesel and lower production costs.

On shareholder value, Ajah said the company’s share price had risen significantly on the Nigerian Exchange.

“At that time, the company’s share price was about N19. However, shareholders who recently checked the market would see that the share price has risen to over N59. This reflects the company’s strong performance,” he said.

Ajah disclosed that the company purchased more than 10 machines last year and had initially planned to pay a higher dividend but was constrained by working capital needs, machinery investments and high financing costs.

He lamented that commercial lending rates of about 33 per cent remained a major burden on manufacturers.

The May & Baker boss also stressed the need for stronger government support for local pharmaceutical manufacturing, noting that although the Federal Government’s Executive Order waiving duties on imported pharmaceutical raw materials was helpful, the benefits remained limited.

“One of the outcomes was the Executive Order signed by the President, which waived duties on imported raw materials. It has been beneficial, although the impact is limited because the savings are only about 7.5 per cent at most,” he said.

Ajah added that the company remained fully compliant with regulatory requirements and undergoes frequent audits by the National Agency for Food and Drug Administration and Control (NAFDAC), the Pharmacists Council of Nigeria and other regulators.

He also disclosed that May & Baker continued to support healthcare delivery in Nigeria through local manufacturing partnerships and community health interventions.

According to him, several products previously manufactured by Pfizer are now being produced locally by May & Baker.

The company also recently partnered with Ikeja Local Government and the National Youth Service Corps to provide free healthcare services and medicines to residents during World Hypertension Day.

Looking ahead, the management expressed optimism about the company’s future, saying May & Baker would continue investing in expansion, new product development and regional growth to strengthen its position as one of Africa’s leading pharmaceutical brands.