May & Baker Nigeria Assures on Good Returns for 2016

By December 22, 2016 Investment News

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.

Source: <The Nation>