Profit companies

May & Baker reports 27% revenue growth despite headwinds

Ugo Aliogo

May & Baker Nigeria Plc reported revenue of N11.9 billion for the financial year ended December 31, 2021, compared to N9.4 billion recorded the previous year, a growth of 27%.

The company said it was able to increase revenue despite the impact of currency volatility, deteriorating power supply and supply chain disruptions on its business operations.

Additionally, the company recorded a net operating profit after tax of N1.05 billion, up 9% from the N965 million recorded in 2020.

The drugmaker has struggled to cut costs as selling costs rose 28% to 7.2 billion naira in 2021 from 5.6 billion naira in 2020. Additionally, its financial costs jumped 53% to N207 million in 2021 due to new Bank of Nigeria (CBN) lending from N135 million in 2020.

Gross profit rose 24% to N4.7 billion from N3.8 billion for the full year 2020. Administrative expenses also jumped 27% to N1.2 billion from 968 million naira in 2020, the company attributed the increase to accelerating inflation in the country. .

The company’s result shows impressive growth in performance and also reflects its resilience and agility.

Speaking at Company 71st Annual General Meeting (AGM) May & Baker board chair Daisy Danjuma said companies still had to deal with the scarcity of dollars to import and fears of another impending devaluation of the naira, which fell from N415/USD in January 2021 to N449/USD in December 2021. An 8% devaluation of the official CBN spot rate for settlement of Form Ms.

Speaking on the healthcare sector in 2021, Danjuma said the pandemic presented great opportunities for the healthcare sector and the country’s major pharmaceutical companies took advantage and responded with the introduction of new products, new investments to boost local manufacturing capacity.