May & Baker records N3.7b turnover, N30b half-year profit

May & Baker Nigeria Plc has posted a turnover of N3.70 billion in its half-year operations, against N3.41 billion achieved in the corresponding period in 2015.

Specifically, the company’s unaudited result for the half year ended June 30, 2016 showed a turnover rose to N3.70 billion, compared with N3.41 billion in first half 2015.

However, cost of sales grew by 16 per cent from N2.25 billion to N2.60 billion due to increases in materials’ costs, devaluation of the Naira and high power cost driven by rampant gas outages.

This, according to the firm, affected gross profit which reduced from N1.16 billion in first half 2015 to N1.1 billion in first half 2016.

Profit before tax rose to N44.25 million in 2016, against N43.73 million recorded in comparable period of 2015. Profit after tax also increased from N29.73 million to N30.09 million during the period under review.

The company’s earnings per share improved from 3.03 kobo to 3.07 kobo in first half 2016. It reduced its finance cost and distribution, sales and marketing expenses by 10 per cent and 12 per cent respectively.

According to the company, despite that the 16.5 per cent rise in inflation and the Naira devaluation from N199 to a dollar had pushed the exchange rate above N300 per dollar, it would continue to benefit from management’s focus on overall operational efficiency.

“While administrative expenses rose on the back of the jumpy inflation from N263.45 million to N309.48 million, distribution, sales and marketing expenses dropped by 12.4 per cent from N583.20 million to N510.84 million. With these, total operating expenses declined to N820.31 million in first half 2016 as against N846.65 million in first half 2015. Finance costs reduced from N284.38 million to N255.80 million.

“This commendable first-half performance has raised the prospects of good returns in the ongoing business year. The company had increased total dividend payout by 20 per cent to N58.8 million, for the 2015 business year compared to what it paid for 2014 business year.”

The Managing Director of the company, Nnamdi Okafor, had told shareholders at the 2016 yearly general meeting that management would remain focused on improving the performance of the company in spite of the challenges in the macro economy.

He assured that the company would remain focused on its long-term goal of building a virile and diversified business that can ensure good competitive long-term returns to the shareholders.

Okafor added that the company was set to break new grounds, adding that it plans to expand into new business areas and seek opportunities that will add value to its performance.

“In the years ahead, our plan is to acquire necessary competences in new business areas and seek opportunities that will add value to our investments.”