May & Baker Nigeria Plc has in recent months made substantial investments that will drive growth and create better returns for shareholders.
Addressing shareholders yesterday at the annual general meeting in Lagos, Chairman, May & Baker Nigeria Plc, Lt. Gen. Theophilus Danjuma (rtd) said the company has committed N541.3 million to construct a dedicated plant for one of its major products while the company also invested additional N437.2 million in Biovaccines Nigeria Limited, its joint venture with the Federal Government.
May & Baker Nigeria holds the majority equity stake of 51 per cent while the government holds 49 per cent equity stake in Biovaccines Nigeria Limited, the company set up for the purpose of May and Baker Nigeria-government partnership.
The Federal Executive Council had at its sitting on May 31, 2017 ratified a joint venture agreement (JVA) between the Federal Government and May & Baker for the formation of a private company, Biovaccines Nigeria Limited to serve as a special purpose vehicle for the production of vaccines in Nigeria.
Danjuma said the company has invested additional capital of N1.86 billion raised recently in a right issue in its business to create enhanced opportunities for sustained growth.
“Shareholders should expect improved results from the business this year and beyond,” Danjuma said.
He noted that despite the discontinuation of some key products due to industry-wide regulatory directives and sale of its noodles business, the company has continued to grow its revenue through aggressive new product introductions and promotion of existing products.
According to him, as part of new strategic initiatives, the company is investing in key therapeutic areas such as sickle cell anemia and a number of new pharma, nutraceutical and herbal products.
He pointed out that the company had signed four memorandum of understanding with the Federal Ministries of Health and Science and Technology to produce and commercialise a sickle cell drug and nutraceutical products developed by the National Institute for Pharmaceutical Research and Development (NIPRD) and the Federal Institute of Industrial Research, Oshodi (FIIRO).
“The investment attraction of our company lies in the future as we continue to drive our growth and expansion strategies. Our strategic investments and growth initiatives in our core competence area, healthcare, will boost returns in the years ahead. I encourage you to maintain faith and optimism in the prospects of our company,” Danjuma said.
Managing Director, May & Baker Nigeria Plc, Mr Nnamdi Okafor, assured shareholders that the management of the company remains committed to sustaining the company’s growth.
He said the continuing improvement in the underlying fundamentals of the company underscored the success of management’s tight cost control measures.
Shareholders commended the company for sustaining growth. Shareholders unanimously approved the payment of N345.05 million as cash dividend for the 2018 business year. The total dividend payout represented 76.05 per cent increase on N196 million paid for the 2017 business year. Shareholders would receive a dividend per share of 20 kobo for the 2018 business year. The company had increased total dividend payout from N58.8 million for 2016 business year to N196 million for 2017 and N345 million for 2018 business years.
Founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu said the performance of May & Baker Nigeria has shown that it is a reliable company.
Key extracts of the audited report and accounts of May & Baker Nigeria for the year ended December 31, 2018 released at the NSE showed a steady growth of 6.08 per cent in total turnover from N8.06 billion in 2017 to N8.55 billion in 2018. Profit before tax stood at N817.91 million while profit after tax from continuing operations was N342.7 million. With N242.5 million extra ordinary income from discontinued operations, the company made a comprehensive income of N585.20 million in 2018 compared to N336.62 million in 2017.
Shareholders’ funds also rose by about 10 per cent from N3.29 billion in 2017 to N3.617 billion in 2018. At the same time, finance costs reduced by 33.67 per cent from N512.13 million in 2017 to N339.72 million in 2018.