May & Baker declares N345m dividend in 2018

May & Baker Nigeria Plc has recommended the payment of N345.05 million cash dividend for the 2018 financial year, even as the healthcare company grew its profit after tax by 73.85 per cent to N585.2 million during the period. According to a statement by the company, the total dividend payout represents 76.05 per cent increase against N196 million paid for the 2017 business year. 
 
In the audited report and accounts of May & Baker Nigeria for the year ended December 31, 2018, submitted to the Nigerian Stock Exchange (NSE), the board indicated that shareholders will receive a dividend per share of 20 kobo for the business year. 
 
The company had increased total dividend payout from N58.8 million in 2016, to N196 million in 2017 and N345 million in 2018.According to the company, the dividend will be paid to all shareholders on the register of the company as at April 18, 2019, including shares from the company’s recent rights issue.
 
The Managing Director of May & Baker Nigeria, Nnamdi Okafor, said recent strategic investments and new growth initiatives being undertaken by the company would boost returns in the years ahead.“We derive our confidence mainly from the pedigree, performance track records and strategic plans of the company. While the net proceeds of the rights issue were received in the first month of the 2019 business year, the board had assured that subscribers to the rights issue will benefit from the 2018 business year dividend. 
 
“The dividend payout of 20 kobo represents a dividend yield of 8.0 per cent on the rights issue’s offer price of N2.50, and ranks among the top bracket of dividend yields so far this earning season,” he said.The company achieved 6.08 per cent in total turnover from N8.06 billion in 2017 to N8.55 billion in 2018 while profit before tax stood at N817.91 million while profit after tax from continuing operations was N342.7 million. 
 
“Add 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,” he said.
 
The company recently floated a Rights Issue from which the sum of N1. 86 billion was realised. The company had indicated it would invest part of the fund to finance part of its equity in Biovaccines Nigeria Limited, the joint venture company for local vaccine production while part would be used for capacity expansion, marketing and brand building and to offset part of its short term debts.