Shareholders have been reassured by May & Baker Nigeria Plc that the business has started new investments that would improve performance, shareholder value, and profitability.
Daisy Danjuma, the business’s chairman, announced that the firm is increasing its investment to boost manufacturing capacity for the pharmaceutical industry during a speech at the 72nd annual general meeting of the company in Lagos.
She also revealed that the company’s Lily Table Water brand is likely to be revived as the new water bottling factory in Ota nears completion.
According to Danjuma, the company’s outlook for the short to medium term is positive, and the management is ready to put the company back on the path of sustainable growth so that it may reclaim its proper place in the industry.
Revenue for the company increased by 20%, from N11.9 billion in 2021 to N14.3 billion in 2022. However, from N4.7 billion earned over the same period in 2021, its gross profit decreased by 18% to N3.9 billion in 2022.
Danjuma ascribed the decline to the high cost of electricity, an increase in the importation of raw materials from Asia, and the weakening of the naira. According to her, the cost of sales, which increased by 45% from N7.2 billion in 2021 to N10.5 billion in 2022, was significantly influenced by economic issues.
Distribution, selling, and marketing costs for the business climbed by 19% to N2.1 billion from N1.8 billion in 2021, but administrative costs only slightly increased by 1%, from N1.22 billion to N1.24 billion.
At the meeting, shareholders approved a 30 kobo dividend for the fiscal year 2022.
Every shareholder whose name appears on the list of members as of the close of business on May 16, 2023, will be subject to this.
She claimed that Biovaccines Nigeria Limited, the company’s continuing joint venture with the federal government for domestic vaccine manufacturing, was proceeding as planned.
She did, however, note that the political battle for a new administration had slowed down the organization’s operations.
“We could not achieve the groundbreaking for the construction of the vaccines factory last year but we hope that will happen this year after the new administration has settled down and formed a new executive cabinet,” she said.
She continued by saying that the company’s subsidiary, Osworth Nigeria Limited, reported sales of N892 million, an increase from N878 million reported in 2021, but a 77% decrease in profit after tax, from N171.7 million to N39 million.
Patrick Ajah, the managing director, thanked the chairman for his support and assured him that the company “has a very bright future” and that the value of the shareholders would continue to rise.