May & Baker Plc Hits Its Highest Earnings in Ten Years

May & Baker Plc, one of Nigeria's biggest pharmaceutical manufacturing companies, has reported its earnings for the first quarter of 2024 (Q1 2024), as it states that this is the highest earnings it has reached in ten years or more, based on official financial statements.

The company's after-tax profit for Q1 2024 increased from N284.4 million to N655.4 million in the first quarter of this year, and its earnings increased from N4.2 billion to N6.4 billion.

Further analysis reveals that the cost of sales increased from N3.1 billion to N4.1 billion.  Administrative costs increased by 66% to N456.3 million from N292.7 million, primarily due to the cost of inventories, while distribution, sales, and marketing expenses also increased to N820.3 million from N436.4 million.

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The inventory contains the raw materials needed to produce goods for sale. May & Baker's inventory increased by 47.8% in three months, from N6.3 billion to N9.6 billion.

THE COMPANY STATEMENT READS,

"May & Baker operates in Lagos and West, East, and North principal geographical areas, and its revenue from continuing operations from external customers by location of operations are calculated to generate the total revenue for three months." 

In the first quarter of 2024, revenue from the North increased to N900.7 million from N470.6 million, revenue from the West increased to N1.3 billion from N1.1 billion, revenue from Lagos increased to N2.3 billion from N1.3 billion, and revenue from the East increased to N1.9 billion from N1.4 billion.

The company's gross profit increased from N1.14 billion to N2.3 billion, more than twofold. In three months, finance costs increased to N91.8 million from N78.3 million, while interest income dropped to N42.5 million from N55.6 million.

May & Baker's pre-tax profit increased from N418.3 million to N963.9 million, a 130.4% increase. However, the manufacturer saw a 14.6% increase to N5.5 billion from N48 billion in non-current assets incurred by the business on property, plants, and equipment.

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"Investment on joint ventures slightly increased to N1.2 billion from N1.13 billion while intangible assets grew to N11.1 million from N8.7 million which made up a total of N6.7 billion non-current assets in three months," the statement added.

Cash and cash equivalents were at N4.1 billion, while trade and other receivables increased marginally to N1.5 billion from N1.04 billion.

About May & Baker Nig. Plc 

May & Baker Nig. Plc. operates under two major business units and four subsidiaries. These are the Pharmaceutical Manufacturing Business and Beverages Business. The subsidiaries are Biovaccines Nigeria Limited, Osworth Nigeria Limited, Servisure Nigeria Limited and Tydipacks Nigeria Limited. While Biovaccines is a partnership with the Federal Government of Nigeria for local production of human vaccines, Servisure, Osworth and Tydipacks are brand owning healthcare companies.

What Is May & Baker Nig. Plc Stock Price Today?

May & Baker Nig. Plc stock price today is N7.00