May and Baker records 90 per cent growth in profit
Key extracts of the audited report and accounts of the company for the year ended December 31, 2014 made available by the Nigerian Stock Exchange (NSE) showed that from a pre-tax loss position of N11.4 million in 2013, the group recorded a pre-tax profit of N101.1 million.
Similarly after tax profit rose by 161 per cent from a negative of N103 million in 2013 to a positive of N63 million in 2014. This was achieved on a group turnover of N7 billion, against N6.3 billion in 2013, a growth of 10.2 per cent.
Cost containment and efficient resource utilization were responsible for the positive signals by way of reduced financing charges, distribution, sales and marketing expenses all which combined to deliver healthier bottom-line.
A growth of 10.2 per cent in sales for the group, as the company boosted its operational profitability with 16.2 per cent increase while sales and marketing expenses dropped by 3 per cent and finance costs also dropped by 4.2 per cent. However, finance cost still remains a challenge to the company.
It will be recalled that the company got under pressure from financing charges and depreciation allowances as a result of its new pharmaceutical manufacturing plant, which was financed largely by loans during the 2008-2009 capital market recession.
Finance costs rose by 34.3 per cent to N630.71 million in 2013 compared with N469.63 million in 2012, while the company provided about N240 million annually in 2013 and 2014 out of its gross profit for the depreciation of the new pharmaceutical facility with monthly depreciation average of N19.8 million. Depreciation on the new plant started in second quarter of 2012.
May and Baker had raised her capacity to produce more products with the construction of the world class pharmaceutical centre known as the PharmaCentre located in Ota Ogun State.
The facility has raised May and Baker’s production capacity by over 60 per cent.
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