By Taofik Salako, Deputy Group Shareholders of May & Baker Nigeria Plc have approved the distribution of N516.7 million as cash dividends to the 70th Annual General Meeting (AGM) of the company in Lagos, shareholders approved the recommendation of the Board of Directors for a dividend of 30 kobo  per share, totalling N517.6 million payout for the 2020 business year

Chairman, May & Baker Nigeria Plc, Senator Daisy Danjuma said despite the very challenging operating environment in the business year under review, it was gladdening that the company recorded  growth in both  turnover  and profit.

The company made a 16 per cent  growth in revenue from N8 billion  in 2019 to  N9.4  billion  in 2020 and achieved a gross profit  growth of  30 per cent  from  N2. 9 billion to N3.8 billion. Profit before tax grew by 39 per cent from N901 million  in 2019 to N1.2 billion in 2020

However, a 54 per cent jump in taxation from N184 million  to N283 million cut down drastically on  Profit after tax . The company therefore recorded a net profit growth of 35 per cent from N716 million in 2019 to N965 million in 2020. Earnings per share also grew 35 per cent from 41.5 kobo to 55.9 kobo for the period under review.

Danjuma said the company made efforts to contain the rising cost of doing business in the country but the hyper-inflation prevalent in the economy, combined with forex scarcity increased the cost of operations. Our cost of sales rose by eight per cent from N5.2 billion in 2019 to N5.6 billion in 2020, she said.

Managing Director, May & Baker Nigeria Plc, Mr. Patrick Ajah said   2020 was one of the most challenging, He said the company’s growth strategies showed commendable resilience and continued to gain traction,

He said the growth recorded in 2020 was a pointer to the general operating efficiency and indication that  company’s strategies were in the right direction.

“We shall continue on this growth trajectory as we hope to accomplish more audacious goals in the current business year,” Ajah said.

Shareholders commended the company for its steady growth in dividend payment yearly. For 2018, the company paid 20 kobo per 50 kobo share, increased this to 25 kobo in 2019 and 30 kobo for 2020.

Shareholders commended the improvements in the operations of the company, adding that the unprecedented resilience, commitment, and hard work of the  management team at ensuring the achievement of the company’s strategic objectives culminated in the success it recorded.

Founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu commended the Board and the management of the pharmaceutical company for their performance in the recent period. He noted that the company must make efforts to take advantage of openings in vaccine production, on for its joint venture with the Federal Government for local vaccine production.

Another shareholder, Mr. Matthew Akinlade expressed confidence in the new management, adding that the shareholders were hopeful that its efforts would  translate into even better returns in terms of dividend payment.