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.
Nigerian Breweries Records $99 Million Foreign Exchange Loss, CEO Reveals
Nigerian Breweries, a subsidiary of Heineken NV, has faced a setback as it disclosed a $99 million foreign exchange loss in its recent financial report.
The revelation was made by Hans Essaadi, the CEO of Nigerian Breweries Plc, during an investor call held in Lagos.
Essaadi attributed the loss to a myriad of economic challenges gripping Nigeria, including the drastic devaluation of the naira and cash scarcity resulting from the nation’s demonetization program.
He explained that the mainstream lager market witnessed a significant decline due to consumers’ inability to afford products like Goldberg after a hard day’s work.
The naira’s depreciation, losing approximately 70% of its value against the dollar since June, has exacerbated inflation to almost 30% in January.
These economic upheavals have placed immense strain on household incomes, especially in a nation where a significant portion of the population lives in extreme poverty.
Despite recording a 9% increase in revenue to 599.6 billion naira, Nigerian Breweries reported a staggering net loss of 106 billion naira for the fiscal year 2023, a stark contrast to the 13.18 billion naira profit from the previous year.
In response to the ongoing challenges, Nigerian Breweries aims to source more raw materials locally to mitigate foreign exchange risks.
The company has also implemented higher product prices effective February 19th to navigate through the turbulent economic landscape.
Despite the bleak financial report, Essaadi affirmed Nigerian Breweries’ commitment to weathering the storm, expressing confidence in the company’s portfolio, processes, and personnel to navigate the challenging market conditions ahead.
Barclays Plc Shares Surge 6.9% on £10 Billion Shareholder Payout Announcement
Shares of Barclays Plc surged by 6.9% following the announcement of a monumental £10 billion shareholder payout.
The British banking giant’s decision to return such a substantial sum to its investors marks a significant milestone in its financial strategy.
The announcement comes in the wake of Barclays’ robust performance, culminating in a return on tangible equity of 9% for the fiscal year 2023.
Demonstrating a forward-looking approach, the company aims to elevate this metric to above 12% by the year 2026, underlining its commitment to sustained growth and profitability.
Chief Executive Officer C.S. Venkatakrishnan expressed Barclays’ dedication to optimizing its operations and enhancing shareholder value.
By implementing rigorous cost-cutting measures, the company plans to reduce costs by £2 billion over the coming years.
The restructuring efforts extend to the reorganization of Barclays into five distinct divisions, each strategically positioned to cater to diverse client needs and optimize service delivery.
The surge in Barclays’ shares reflects investor confidence in the bank’s strategic direction and its ability to deliver on its promises.
The appointment of new leadership roles and the realignment of business divisions underscore Barclays’ proactive stance in adapting to evolving market dynamics and regulatory landscapes.
Barclays’ pledge to streamline operations, bolster returns, and prioritize shareholder interests positions it favorably within the competitive financial landscape.
The £10 billion shareholder payout announcement signals a pivotal moment for Barclays Plc, solidifying its status as a formidable player in the global banking arena and setting the stage for sustained growth and value creation in the years ahead.
Capital One Financial Corp. to Acquire Discover Financial Services in $35 Billion Mega Deal
Capital One Financial Corp. has announced its intention to acquire Discover Financial Services in a $35 billion deal.
This strategic acquisition positions Capital One as the largest credit card company in the United States by loan volume, intensifying competition with Wall Street’s prominent players.
Under the terms of the agreement, Capital One will purchase Discover at a premium, offering 1.0192 of its own shares for each Discover share—a 26.6% premium based on the closing price on February 16th.
Pending regulatory and shareholder approvals from both entities, the deal is anticipated to conclude in late 2024 or early 2025.
The merger between Capital One and Discover represents the most significant global consolidation this year, surpassing notable acquisitions in various sectors.
By combining forces, Capital One and Discover unite two esteemed consumer-finance brands, effectively eclipsing competitors such as JPMorgan Chase & Co. and Citigroup Inc. in US credit-card loan volume.
This acquisition not only amplifies Capital One’s market share but also grants the company a formidable position within the payment networks sphere.
Capital One’s CEO, Richard Fairbank, described the merger as a “singular opportunity” to establish a robust presence alongside the largest payment networks, underscoring the transformative potential of the deal.
Upon completion, Capital One shareholders will possess approximately 60% ownership of the consolidated entity, with Discover shareholders owning the remaining stake.
The acquisition is expected to yield significant synergies, generating $2.7 billion in pretax benefits.
The strategic rationale behind the acquisition underscores the increasing importance of scale and technological capabilities in the financial sector.
By leveraging Discover’s extensive network and Capital One’s expertise, the combined entity aims to drive innovation and enhance value for customers in an ever-evolving market landscape.
Billionaire Watch4 weeks ago
MacKenzie Scott Sells Off $10.4 Billion Worth of Amazon Shares
Naira4 weeks ago
Dollar to Naira Black Market Exchange Rate January 26th, 2024
Forex3 weeks ago
Dollar to Naira Black Market Exchange Rate February 1st, 2024
Company News3 weeks ago
UAC Posts N12.7 Billion Profit Before Tax in 2023
Forex3 weeks ago
Dollar to Naira Black Market Exchange Rate February 2nd, 2024
Banking Sector3 weeks ago
CBN Accuses Banks of Hoarding $5 Billion in Foreign Currencies
Education4 weeks ago
WAEC: Over 8,000 Candidates Register for First Series of Computer Based-WASSCE in Nigeria
Forex4 weeks ago
Dollar to Naira Black Market Exchange Rate January 30th, 2024