May & Baker eyes N10b turnover, expansion in African market
May & Baker Nigeria Plc has said the company would surpass N10 billion turnover for the first time this year as against N9.4 billion posted last year.
It added that his herbal facility is leading its backward integration process, adding that its input sourcing would be 100 per cent local, adding that the company was on the path towards emerging as a leader in sub-Saharan Africa.
According to the company, the projection was based on the achievement and success of the company’s strategic plan, especially in the areas of new investment in vaccines, sickle cell drugs and herbal medicine.
The Managing Director and Chief Executive Officer of the company, Patrick Ajah, while addressing journalists at the 2021 Media Luncheon in Lagos, announced that the company has completed its state-of-the-art herbal/nutraceuticals products facility at its Pharma Centre, an investment it hopes would lead its next face of growth.
Ajah said the facility would significantly increase the firm’s capacity in the manufacturing and the commercialisation of its herbal medicine for the management of sickle cell anaemia.
Ajah said the herbal product facility would boost the company’s collaboration with other Nigeria research institutes and professionals in the areas of product development.
He said the company’s growth strategies showed commendable resilience and continued to gain traction, noting that these were pointers to its operating efficiency and innovative management approach.
He pointed out that the commencement of operations of its manufacturing plant in Ota, Ogun State, would open up a new vista of growth for the group, adding that the company has concluded arrangements to extend its business activities across sub-Saharan Africa to grow its market share in a sustainable manner.
According to him, despite the macroeconomic challenges, the company’s total revenue grew from N6.4 billion as of September 2020 to N8.1 billion during the same period in 2021, representing 25 per cent increase while profit before tax (PDT) rose to N1.3 billion from N1 billion achieved in the corresponding period in 2020.
He noted that the margin improvement validated management’s tight cost control measures and continuing efforts to harness synergies within the group to reduce costs and improve shareholders’ value.
He said the country’s macroeconomic challenges, ranging from high-interest rates, foreign exchange shortages, petroleum product hikes amongst others have impacted negatively on its bottom line.
“With a huge increase in in the cost of raw materials, some more than 100 per cent, a significant delay and high costs shipment and even custom duties, a seemingly worsening security situation of the country that has made many locations inaccessible, managing business in Nigeria this year has been a herculean task.
“Although the fourth quarter has been very challenging with an even worsening forex crisis and that means we sometimes resort to the parallel market. But we are optimistic to close the year with final figures not so far from trends seen in the last three quarters,” he assured.