Tag: May & Baker Nigeria

May & Baker Nigeria Plc has successfully raised N1.86 billion in new equity funds from its shareholders, providing the healthcare company with new capital buffer to reduce indebtedness and support its growth plan.

May & Baker Nigeria yesterday concluded its rights issue with the listing of the 745.23 million ordinary shares of 50 kobo each at N2.50 per share. With the listing of the additional 745.23 million ordinary shares of 50 kobo each, the total issued and fully paid up shares of May & Baker Nigeria increased from 980 million ordinary shares of 50 kobo each to 1.725 billion ordinary shares of 50- kobo each.

Managing Director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor, has said the company would pay dividend on the new ordinary shares issued through the rights issue, despite the fact that the net proceeds of the rights issue were received towards the end of the 2018 business year.

According to him, while the impact of the recapitalisation will become visible in the 2019 business year, the company will pay dividend for the 2018 business year on the old and newly issued shares.

He said the net proceeds of the rights issue would 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, which it is building a dedicated plant. The company would also use N400 million to offset part of its current loan portfolio while N500 million will be invested in marketing and brand building.

Citing the growth outlook of the healthcare company, Okafor said recent strategic investments and new growth initiatives being undertaken by the company would boost returns in the years ahead.

“We derive our confidence mainly from the pedigree, performance track records and strategic plans of the company which we believe should appeal to all discerning investors. The new funds will be used to strengthen their investments and make the company more profitable,” Okafor said.

He outlined that company has been making strategic investments including construction of Anti Retroviral drugs in Nigeria in 2006 and a World Health Organisation (WHO) standard pharmaceutical manufacturing plant known as the Pharmacentre in 2011.

According to him, the Pharmacentre, which was among the few certified by the WHO for current Good Manufacturing Practice in 2014, has capacity to produce 6.0 billion tablets and 49 million bottles of 60ml liquid medicines annually.

“We are also investing in key areas of healthcare where we have both comparative and competitive advantage, top among which include the joint venture with the federal government on local vaccine production. To us that investment is a goldmine because of the huge opportunities that exist in the Nigerian vaccine market,” Okafor said.

May & Baker Nigeria recently signed a memorandum of understanding with the Federal Ministries of Health and Science and Technology to commercialize some locally discovered medicaments.

 

In the first instance, it shall commence the commercial production of an anti sickle cell drug discovered by the National Institute for Pharmaceutical Research and Development. This drug holds a large potential because of the enormity of the sickle cell challenge in the country. Similarly, it is working with the Federal Institute of Industrial Research in Oshodi to develop and commercialize a nutraceutical product.

Okafor said while the company is making local inroads, it has also signed marketing agreements with foreign companies to market herb-based medicines key to African disease profile, with some of these products already doing well in the market.

“Our strategic goal is to become a preferred brand in Nigeria with the clear leadership of the market segments we deal in. We also want to become a regional healthcare powerhouse with strong and wide footprints in the sub Saharan market,” Okafor said.

May & Baker Nigeria had floated a rights issue of 980 million ordinary shares of 50 kobo each at N2.50 per share. The rights issue was provisionally pre-allotted on the basis of one new ordinary share for every one ordinary share held.

 

May & Baker Nigeria Plc has assured shareholders that the company has the capacity to sustain its dividend payout despite the tough operating environment in the current business year.

May & Baker Nigeria had in 2017 increased cash dividend by 233.3 per cent to 20 kobo per share compared with 6.0 kobo per share paid for the 2016 business year.

At a media launch in Lagos, Managing Director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor, said while dividend payment is subject to the decision of the board and extant regulations, the company has the capacity to sustain its dividend payout.

Citing the performance of the company in the past three quarters, Okafor assured that May & Baker Nigeria is on good footing to match its dividend payout, despite envisaged increase in outstanding shares due to the recent rights issue.

May & Baker Nigeria had last month closed application for a rights issue of 980 million ordinary shares of 50 kobo each at N2.50 per share. The company had stated that it would pay dividend on the rights’ shares.

“Despite all the constraints, our business has managed to thrive as shown by our results in the past three quarters. Our turnover has been growing despite the recent streamlining of our business into core healthcare business. We have also grown our profit. We think we have done well enough, considering our circumstances,” Okafor said.

Key extracts of the nine-month report for the period ended September 30, 2018 showed that May & Baker Nigeria continued to witness impressive growth in its core Pharma business, with stronger margins, despite slight decline in revenue and present macroeconomic challenges.

The report showed that gross profit rose by 10.6 per cent from N2.156 billion in third quarter 2017 to N2.385 billion in third quarter 2018. Operating profit also increased by 15.83 per cent from N770.71 million to N892.75 million. With finance cost dropping by 37.25 per cent from N479.60 million in third quarter 2017 to N300.94 million in third quarter 2018, profit before tax jumped by 89.19 per cent to N609.94 million as against N322.39 million recorded in comparable period of 2017.

Profit after tax from continuing operations also leapt by 89.82 per cent from N218.505 million to N414.76 million. With the addition of net profit of N329.57 million from discontinued operation, total net comprehensive income grew by 240.65 per cent to N744.33 million in 2018 as against N218.505 million in 2017. Turnover dropped marginally by 5.63 per cent from N6.93 billion to N6.54 billion. The company had during the period divested and sold its noodles business as part of its strategic focus on its core healthcare business.

Earnings per share, based on continuing operations, increased by 89.78 per cent from 22.30 kobo in 2017 to 42.32 kobo in 2018. On the basis of total net comprehensive income, earnings per share jumped by 240.58 per cent to 75.95 kobo in third quarter 2018 as against 22.30 kobo in third quarter 2017.

 

 

Shareholders of May & Baker Nigeria Plc will earn dividend on their existing shareholdings and their rights as the healthcare company assures that its strategic investments will increase returns to shareholders.

May & Baker Nigeria is raising N2.45 billion in new equity funds through a rights issue to existing shareholders. The company is offering 980 million ordinary shares of 50 kobo each at N2.50 per share to existing shareholders. The rights issue has been provisionally pre-allotted on the basis of one new ordinary share for every one ordinary share held as at the close of business on Tuesday, September 4, 2018. Application list opened on Monday October 22, 2018 and will close on Wednesday November 28, 2018. Capital Assets Limited and Compass Investments &Securities Limited are the stockbrokers to the rights issue while Cordros Capital Limited and Afrinvest (West Africa) Limited are the issuing houses.

Managing Director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor, said the company would pay dividend on the new ordinary shares to be issued through the rights issue, despite the fact that the net proceeds of the rights issue will be received towards the end of current business year.

According to him, while the impact of the recapitalisation will become visible in the 2019 business year, the company will pay dividend for the 2018 business year on the old and new shares to be issued.

He said 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. 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.

He urged shareholders to pick up their rights as the company has bulging opportunities and great new potentials that will ensure higher returns to investors.

“We derive our confidence mainly from the pedigree, performance track records and strategic plans of the company which we believe should appeal to all discerning investors. The new funds will be used to strengthen their investments and make the company more profitable,” Okafor said.

He pointed out that May & Baker Nigeria was the first registered pharmaceutical company in Nigeria and the first to produce anti malaria and anti-infective medicines in Nigeria as well as the first to market human vaccines and produce anti-retroviral drugs in Nigeria.

He noted that a five-year financial summary shows that the company has consistently grown revenue by more than 10 per cent since 2013 and it has shown capacity to make profits in the last five years with pre- tax profit doubling in the last two years.

“Since 2014, May & Baker Nigeria has also consistently paid dividends which increased by over 300 per cent from 6.0 kobo in 2016 to 20 kobo in 2017 for every 50 kobo share,” Okafor said.

He outlined that company has been making strategic investments including construction of Anti Retroviral drugs in Nigeria in 2006 and a World Health Organisation (WHO) standard pharmaceutical manufacturing plant known as the Pharmacentre in 2011.

According to him, the Pharmacentre, which was among the few certified by the WHO for current Good Manufacturing Practice in 2014, has capacity to produce 6.0 billion tablets and 49 million bottles of 60ml liquid medicines annually.

“We are also investing in key areas of healthcare where we have both comparative and competitive advantage, top among which include the joint venture with the federal government on local vaccine production. To us that investment is a goldmine because of the huge opportunities that exist in the Nigerian vaccine market,” Okafor said.

May & Baker Nigeria recently signed a memorandum of understanding with the Federal Ministries of Health and Science and Technology to commercialize some locally discovered medicaments. In the first instance, it shall commence the commercial production of an anti sickle cell drug discovered by the National Institute for Pharmaceutical Research and Development. This drug holds a large potential because of the enormity of the sickle cell challenge in the country. Similarly, it is working with the Federal Institute of Industrial Research in Oshodi to develop and commercialize a nutraceutical product.

Okafor said while the company is making local inroads, it has also signed marketing agreements with foreign companies to market herb-based medicines key to African disease profile, with some of these products already doing well in the market.

“Our strategic goal is to become a preferred brand in Nigeria with the clear leadership of the market segments we deal in. We also want to become a regional healthcare powerhouse with strong and wide footprints in the sub Saharan market,” Okafor said.

 

Directors of May & Baker Nigeria Plc and professional advisers to the healthcare company have signed off the offer documents for the company’s recapitalisation, paving the way for application list for the offer to open.

At a signing ceremony in Lagos, the board of the company, issuing houses and other professional parties rounded off the pre-offer processes with the formal signing of the offer documents including the rights issue circular, posters and other agreements.

The signing ceremony followed approval of the rights issue by the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE). Shareholders had in 2014 empowered the company to raise up to N3.2 billion new equity capital.

Capital Assets Limited and Compass Investments &Securities Limited are the stockbrokers to the rights issue while Cordros Capital Limited and Afrinvest (West Africa) Limited are the issuing houses.

May & Baker Nigeria will be offering 980 million ordinary shares of 50 kobo each at N2.50 per share to existing shareholders. The rights issue has been provisionally pre-allotted on the basis of one new ordinary share for every one ordinary shares held as at the close of business on Tuesday, September 4, 2018.

Application list for the rights issue is scheduled to open on Monday October 15, 2018 and close on Wednesday November 21, 2018.

Chairman, May & Baker Nigeria Plc, Lt. Gen Theophilus Danjuma (rtd), recently told shareholders that directors of the company believed that the time is now right to raise the funds to enable the company harness new opportunities.

“Therefore our rights issue will soon open and I hope shareholders will take up their rights to support our company in achieving its new vision. We shall all reap the rewards in the immediate future and beyond,” Danjuma said.

He outlined that the company has envisioned a new vision that will see it dominating the Sub-Saharan Africa (SSA) markets in line with its new vision of being the leading healthcare brand in SSA.

According to him, the new five-year strategic plan of the company entails focus and expansion along the company’s competitive advantage of healthcare and it will soon begin to establish footprints and seek dominance in this area in the SSA region.

“Your company has turned the corner and is now solidly on the path of growth and strong profitability. Our plan in the next few years is to focus on driving our new vision, strategic goals and establishing our footprint as a leading healthcare brand in Sub-Saharan Africa. The company will strive to acquire required competencies in related business areas, expand its regional reach to explore new markets, improve capacity utilization at our WHO GMP pharmaceutical facility in Ota and continue to deliver value and returns on investments to our loyal shareholders,” Danjuma said.

May & Baker Nigeria had sustained impressive growth in the first half of this year as net profit rose by 534 per cent to N601.37 million.

Key extracts of the interim report and accounts of May & Baker Nigeria for the six-month period ended June 30, 2018 had shown that total comprehensive income-which included profit after tax and extra ordinary income rose to N601.37 million in first half 2018 as against N94.86 million recorded in the comparable period of 2017.

The 534 per cent increase in net distributable earnings has raised strong prospect of possible significant increase in dividend payout to shareholders. The healthcare company had increased its dividend payout by 233 per cent for the 2017 business year after it rounded off the year with significant growths in profitability.

The report showed a well-rounded improvement in the bottom-line of the healthcare company as key underlying profitability margins improved considerably during the period. Pre-tax profit margin-which measures average pre-tax profit per unit of sale and serves as benchmark for profitability of the company, tripled from 3.13 per cent in first half 2017 to 8.44 per cent in first half 2018. Gross profit margin had increased from 30 per cent in first half 2017 to 33 per cent in first half 2018 while operating margin also grew to 12.7 per cent in 2018 as against 10.11 per cent recorded in corresponding period of 2017.

Market analysts said the increase in gross margin, operating margin and pre-tax profit margin showed that the company’s performance in the first half was driven by improved business operations, increased efficiency and better cost management.

The report showed that group’s profit before tax rose by 178.76 per cent to N388.90 million in first half 2018 as against N139.51 million recorded in comparable period of 2017. Profit after tax also leapt by 178.78 per cent from N94.86 million to N264.45 million. Earnings per share thus increased from 9.68 kobo in first half 2017 to 26.98 kobo in first half 2018. With the addition of N336.92 million gain from discontinued operations of its food business , total net earnings jumped to N601.37 million in first half 2018 compared with N94.86 million recorded in first half 2017.

Group operating profit had increased by 29.9 per cent from N452.25 million to N587.35 million. Gross profit also rose from N1.34 billion to N1.52 billion. Group turnover had increased from N4.47 billion in first half 2017 to N4.61 billion in first half 2018. Further analysis had shown that the company’s finance costs reduced by 36 per cent from N326.87 million in first half 2017 to N209.34 million in first half 2018.

May & Baker Nigeria Plc is seeking regulatory approval to raise about N2.45 billion new equity fund by offering new ordinary shares to existing shareholders.

Regulatory document obtained yesterday by The Nation indicated that May & Baker Nigeria Plc plans to float a rights issue of 980 million ordinary shares of 50 kobo each at N2.50 per share.

The rights issue has been provisionally pre-allotted on the basis of one new ordinary share for every one ordinary shares held as at the close of business on Tuesday, September 4, 2018.

Authorities at the Nigerian Stock Exchange (NSE) confirmed the receipt of the application from the healthcare company.

The confirmation came on the heels of recent report by The Nation that Nigeria’s largest cement and healthcare manufacturing companies, including May & Baker Nigeria, plan to raise N240 billion new capital to support growing business and restructure their balance sheets.

Shareholders had in 2014 empowered the company to raise up to N3.2 billion new equity capital.

Chairman, May & Baker Nigeria Plc, Lt. Gen Theophilus Danjuma (rtd), recently told shareholders that directors of the company believed that the time is now right to raise the funds to enable the company harness new opportunities.

“Therefore our rights issue will soon open and I hope shareholders will take up their rights to support our company in achieving its new vision. We shall all reap the rewards in the immediate future and beyond,” Danjuma said.

He outlined that the company has envisioned a new vision that will see it dominating the Sub-Saharan Africa (SSA) markets in line with its new vision of being the leading healthcare brand in SSA.

According to him, the new five-year strategic plan of the company entails focus and expansion along the company’s competitive advantage of healthcare and it will soon begin to establish footprints and seek dominance in this area in the SSA region.

“Your company has turned the corner and is now solidly on the path of growth and strong profitability. Our plan in the next few years is to focus on driving our new vision, strategic goals and establishing our footprint as a leading healthcare brand in Sub-Saharan Africa. The company will strive to acquire required competencies in related business areas, expand its regional reach to explore new markets, improve capacity utilization at our WHO GMP pharmaceutical facility in Ota and continue to deliver value and returns on investments to our loyal shareholders,” Danjuma said.

Key extracts of the interim report and accounts of May & Baker Nigeria for the six-month period ended June 30, 2018 showed that total comprehensive income-which included profit after tax and extra ordinary income rose to N601.37 million in first half 2018 as against N94.86 million recorded in the comparable period of 2017.

The 534 per cent increase in net distributable earnings has raised strong prospect of possible significant increase in dividend payout to shareholders. The healthcare company had increased its dividend payout by 233 per cent for the 2017 business year after it rounded off the year with significant growths in profitability.

The report showed a well-rounded improvement in the bottom-line of the healthcare company as key underlying profitability margins improved considerably during the period. Pre-tax profit margin-which measures average pre-tax profit per unit of sale and serves as benchmark for profitability of the company, tripled from 3.13 per cent in first half 2017 to 8.44 per cent in first half 2018. Gross profit margin had increased from 30 per cent in first half 2017 to 33 per cent in first half 2018 while operating margin also grew to 12.7 per cent in 2018 as against 10.11 per cent recorded in corresponding period of 2017.

Market analysts said the increase in gross margin, operating margin and pre-tax profit margin showed that the company’s performance in the first half was driven by improved business operations, increased efficiency and better cost management.

The report showed that group’s profit before tax rose by 178.76 per cent to N388.90 million in first half 2018 as against N139.51 million recorded in comparable period of 2017. Profit after tax also leapt by 178.78 per cent from N94.86 million to N264.45 million. Earnings per share thus increased from 9.68 kobo in first half 2017 to 26.98 kobo in first half 2018. With the addition of N336.92 million gain from discontinued operations of its food business , total net earnings jumped to N601.37 million in first half 2018 compared with N94.86 million recorded in first half 2017.

Group operating profit had increased by 29.9 per cent from N452.25 million to N587.35 million. Gross profit also rose from N1.34 billion to N1.52 billion. Group turnover had increased from N4.47 billion in first half 2017 to N4.61 billion in first half 2018. Further analysis had shown that the company’s finance costs reduced by 36 per cent from N326.87 million in first half 2017 to N209.34 million in first half 2018.

Business segmentation analysis showed that the performance of the company was driven by its core pharmaceuticals business, which saw 22 per cent growth in sales during the period. The company recorded improvement in sales in all its principal geographical business areas of Lagos, West, East and North.

 

 

 

May & Baker Nigeria Plc is finalising arrangements to raise new capital through a rights issue as the company seeks to recapitalise its operations to drive a new vision of being the dominant healthcare brand in the Sub-Saharan Africa region.

At its annual general meeting in Lagos, shareholders voted unanimously to increase the authorised share capital of the healthcare company from N1.9 billion of 3.8 billion ordinary shares of 50 kobo each to N3 billion of 6.0 billion ordinary shares of 50 kobo each. Shareholders also authorised the board of the company to sell or lease any one of the company’s two properties located at Sapara Street, Ikeja. Shareholders had in 2014 empowered the company to raise N3.2 billion new equity capital.

Chairman, May & Baker Nigeria Plc, Lt. Gen Theophilus Danjuma (rtd), said directors of the company believe that the time is now right to raise the funds to enable the company harness new opportunities.

“Therefore, our rights issue will soon open and I hope shareholders will take up their rights to support our company in achieving its new vision. We shall all reap the rewards in the immediate future and beyond,” Danjuma said.

He outlined that the company has envisioned a new vision that will see it dominating the Sub-Saharan Africa (SSA) markets in line with its new vision of being the leading healthcare brand in SSA.

According to him, the new five-year strategic plan of the company entails focus and expansion along the company’s competitive advantage of healthcare and it will soon begin to establish footprints and seek dominance in this area in the SSA region.

He pointed out that in line with its new vision and following shareholders’ approval given at the extra-ordinary general meeting in November 2017, the company had successfully completed the divestment from its noodles business in the first quarter of 2018, adding that the gain from the divestment will be recorded in the current year’s results.

Danjuma, who was represented by a non-executive director, Dr. Edugie Abebe, said streamlining the company’s activities along its core area of healthcare will put it in a position to deliver stronger profits in the future.

Shareholders commended the board and management of the company for the increase in dividend payout to 20 kobo for the 2017 business year.

Its Managing Director, Mr. Nnamdi Okafor, said the company decided to optimise its assets by selling the dormant property and reinvest the proceeds in development of its Abuja property and acquisition of another property around its Ota manufacturing complex.

He said the company realised N775 million from the divestment of its noodles business, noting that the company will start the construction of its vaccines factory by the third quarter of 2018.

•Shareholders approve N3b new capital

May & Baker Nigeria Plc is finalising arrangements to raise new capital through a rights issue as the company seeks to recapitalise its operations to drive a new vision of being the dominant healthcare brand in the Sub-Saharan Africa region.

At the annual general meeting yesterday in Lagos, shareholders voted unanimously to increase the authorised share capital of the healthcare company from N1.9 billion of 3.8 billion ordinary shares of 50 kobo each to N3 billion of 6.0 billion ordinary shares of 50 kobo each. Shareholders also authorised the board of the company to sell or lease any one of the company’s two properties located at Sapara Street, Ikeja. Shareholders had in 2014 empowered the company to raise N3.2 billion new equity capital.

Chairman, May & Baker Nigeria Plc, Lt. Gen Theophilus Danjuma (rtd), said directors of the company believe that the time is now right to raise the funds to enable the company harness new opportunities.

“Therefore our rights issue will soon open and I hope shareholders will take up their rights to support our company in achieving its new vision. We shall all reap the rewards in the immediate future and beyond,” Danjuma said.

He outlined that the company has envisioned a new vision that will see it dominating the Sub-Saharan Africa (SSA) markets in line with its new vision of being the leading healthcare brand in SSA.

According to him, the new five-year strategic plan of the company entails focus and expansion along the company’s competitive advantage of healthcare and it will soon begin to establish footprints and seek dominance in this area in the SSA region.

“Your company has turned the corner and is now solidly on the path of growth and strong profitability. Our plan in the next few years is to focus on driving our new vision, strategic goals and establishing our footprint as a leading healthcare brand in Sub-Saharan Africa. The company will strive to acquire required competencies in related business areas, expand its regional reach to explore new markets, improve capacity utilization at our WHO GMP pharmaceutical facility in Ota and continue to deliver value and returns on investments to our loyal shareholders,” Danjuma said.

He pointed out that in line with its new vision and following shareholders’ approval given at the extra-ordinary general meeting in November 2017, the company had successfully completed the divestment from its noodles business in the first quarter of 2018, adding that the gain from the divestment will be recorded in the current year results.

He said streamlining the company’s activities along its core area of healthcare will put it in a position to deliver stronger profits in the future.

He noted the improved performance of the group’s businesses as operating subsidiary – Osworth Nigeria Limited grew its revenue by 29 per cent from N165 million in 2016 to N213 million in 2017 and grew profit after tax by 80 per cent from N7.6 million in 2016 to N13.7 million in 2017.

“I am equally pleased to report more good news on the progress made with Biovaccines Nigeria Limited, our Joint Venture project with the Federal Government for the production of vaccines. The board of Biovaccines was inaugurated on January 19th 2018 and the company is gearing fast to commence business. I am optimistic that this investment will succeed not only to the benefit of investors but also for the good of the country,” Danjuma, who was represented by a non-executive director, Dr. Edugie Abebe said.

Shareholders commended the board and management of the company for the increase in dividend payout to 20 kobo for the 2017 business year.

Founder, Independent Shareholders Association of Nigeria (ISAN), Mr. Sunny Nwosu, said the continuing increase in dividend payout is a pleasant trend that reassures shareholders that the future of their investments is bright.

He said shareholders will support the company in its quest to recapitalise urging the board to carry shareholders along in the process of determining the details of the offer.

Managing Director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor, said the company decided to optimise its assets by selling the dormant property and reinvest the proceeds in development of its Abuja property and acquisition of another property around its Ota manufacturing complex.

He said the company realised N775 million from the divestment of its noodles business noting that the company will start the construction of its vaccines factory by the third quarter of 2018.

 

 

 

Audited report and accounts of May & Baker Nigeria for the year ended December 31, 2017 showed that turnover grew by 10 per cent from N8.5 billion in 2016 to N9.4 billion in 2017. Gross profit grew by an impressive 29 per cent from N2.5 billion in 2016 to N3.3 billion in 2017. Cost containment strategies saw cost of sales ratio declining to 64.91 per cent in 2017 from 70.0 per cent in 2016. Earnings margins followed the same growth pattern as the company earned 12 kobo in profit from every Naira it invested. Profit before tax grew by 75 per cent from N346 million in 2016 to N606 million in 2017 while profit after tax position jumped by 1002 per cent from a loss position of N41 million in 2016 to a profit after tax of N371 million in 2017.

 

 

The management of May & Baker Nigeria Plc has assured of steady growth in sales and stable profitability in 2016 notwithstanding the tough macroeconomic environment that had constrained access to production materials and consumer’s purchasing power.

Managing Director, May & Baker Nigeria PLC, Mr. Nnamdi Okafor, who spoke yesterday at the company’s end-of-year media parley at the corporate head office in Ikeja, Lagos, said the company’s performance has been resilient so far this year citing the third quarter results and the subsequent management accounts.

According to him, although the management cannot provide full figures now because the company still has about two weeks to round off its 2016 business year ending December 31, 2016, the first three quarters of the year pointed to positive signals of where the company shall be by the end of the year.

He noted that in spite of the macroeconomic challenges, the company’s sales have been trending at some 13 per cent growth while the management has maintained efficient cost control to mitigate the effect of the macroeconomic headwinds on the bottom-line.

“We have continued to take advantage of improved production capacity and better cost management to mitigate the tough operating environment. Our results in 2016 have consistently shown improvement in major fundamentals, a trend which started in the last quarter of 2014 and significantly improved in 2015,” Okafor said.

He assured that as a world-class company, May & Baker Nigeria is consistently keeping abreast of international best practice and making strategic plans that can take its businesses to the next levels.

He pointed out that the company’s World Health Organisation (WHO)-prequalified manufacturing facility in Ota is growing into a hub of pharmaceutical manufacturing in West Africa adding that the company is also building a world-class human capital that will help to enhance the global standards of its operations.

“We are already looking ahead for better results this year and beyond. By the Grace of God and with the support of all, we shall accomplish our objectives not only to remain the leader in our market segments but also to create more wealth and value for all our stakeholders,” Okafor assured.

Key extracts of May & Baker Nigeria’s nine-month report for the period ended September 30, 2016 showed that turnover rose to N5.94 billion in 2016 as against N5.28 billion recorded in comparable period of 2015. While higher cost of sales dropped gross profit from N1.75 billion to N1.70 billion, the company took advantage of its internal cost management to boost operating profit from N470.4 million in third quarter 2015 to N489.5 million in third quarter 2016.

Also, finance costs reduced considerably from N425.39 million in third quarter 2015 to N377.93 million in third quarter 2016. Profit before tax rose to N66.24 million in 2016 as against N60.63 million recorded in corresponding period of 2015. Profit after tax also grew to N44.4 million in 2016 compared with N41.2 million in 2015. With this, earnings per share improved from 4.21 kobo in third quarter 2015 to 4.53 kobo in third quarter 2016.

Against the background of its improved performance in 2015, May & Baker Nigeria had increased total dividend payout by 20 per cent to N58.8 million for the 2015 business year compared to what it paid for 2014 business year.