Nigeria’s leading pharmaceutical manufacturers, May & Baker have recorded N11.9billion revenue growth for the business year of 2021. The revenue rose by N2.5 Billion or 27% as against the previous year which was recorded at N9.4 billion.
Despite the impact of FX volatility, deteriorating power supply, and supply chain interruptions on its business operations, the company recorded a net operating profit after tax of N1.05 billion, up 9% from N965 million in 2020.
About 10 months ago, the company had reported a 26.5 percent increase in profit after tax from N438.886 million filed in the first half (H1) of 2020 to N555.274 million in the first half of 2021.
Investors King reported that the revenue grew by 35.7 percent in the period under review to N5.525 billion, up from the N4.072 billion recorded in the corresponding period of 2020.
Gross profit rose by 51.5 percent from N1.592 billion recorded in the first half of 2020 to N2.412 billion in the first half of 2021.
In this year’s report, sales costs increased by 28 percent to N7.2 billion in 2021, compared to N5.6 billion in 2020. In addition, due to fresh loans from the Central Bank of Nigeria, its financing costs increased by 53% to N207 million in 2021, up from N135 million in 2020.
Similarly, gross profit increased by 24% to N4.7 billion in 2021, up from N3.8 billion the previous year. Administrative expenses increased by 27 percent to N1.2 billion in 2021, up from N968 million in 2020. The corporation ascribed the increase to the country’s rising inflation.
Profit before tax grew from N1.25 billion in 2020 to N1.5 billion while profit for the period stood at N1.049 billion, up from N964.564 million recorded in 2020.
The company’s performance has improved significantly, and its resilience and nimbleness are reflected in its results.
Commenting on the company’s performance, Chairman, board of directors, May &Baker, Daisy Danjuma said “Businesses still had to contend with the scarcity of dollars for importation and a fear of impending further devaluation for the naira which moved from N415/USD in January 2021 to N449/USD in December 2021. An 8percent devaluation of official CBN spot rate for settlement of Form Ms.”
Danjuma added that the pandemic created enormous chances for the healthcare sector in 2021, and major pharmaceutical businesses in the country took advantage of them by introducing new products and making new investments to improve local production capacity.
