Shareholders of May & Baker Nigeria Plc (M&B) have approved a total dividend payout of N517.57 million for the financial year ended 2023.

This translates to a dividend of 30k for every 50k share held in the company, representing N571.57 million, subject to applicable tax. The shareholders gave their consent at the company’s 73rd annual general meeting (AGM) on Thursday in Lagos.

They also lauded the company’s leadership for maintaining a fair performance and paying dividends despite the tough business operations in the country during the year under review.

Daisy Danjuma, chairwoman of the May & Baker board of directors, said every shareholder whose name appeared in the register of members at the close of business on May 21 would be paid.

Revealing the pharmaceutical company’s financials in 2023, Danjuma stated that, in spite of the tough challenges facing businesses, the company still turned in a fairly good performance. She said the company’s group revenue grew by 37 per cent from N14.3 billion in 2022 to N19.7 billion in 2023.

According to her, the firm’s gross profit also grew by 70 per cent to N6.8 billion in 2023 from N3.9 billion posted in 2022. The chairwoman mentioned that the company’s operating income dropped significantly from N1.6 billion in 2022 to N62.2 million in 2023.

Ms Danjuma indicated that distribution, selling and marketing expenses grew by 19 per cent to N2.6 billion in 2023 from N2.1 billion in 2022 to drive revenue. She added that the pharmaceutical firm’s administrative expenses grew by 119 per cent from N1.2 billion in 2022 to N2.7 billion in 2023.

“It is important to note that N1.1 billion out of this came from foreign exchange losses due to the depreciation in the value of naira versus the dollar. At least three major pharmaceutical companies closed business operations in Nigeria while many small local players also closed shop.

“The total loss by corporates due to foreign exchange losses runs into trillion, looking across all industries,  with some even recording erosion of shareholders’ funds. Coupled with this is the impact of fuel subsidy removal and power costs for factory operations have increased by over 500 per cent across industries on account of higher diesel and gas prices,” she said.

According to her, the company’s future outlook is to continue investing more in expanding its production capacity in the Pharma Centre at Ota, in Ogun.

Ms Danjuma said the pharmaceutical firm has also re-launched its water business -Lily table water, which is now produced in its plant at Ota factory, which used to be the old food plant for its noodles business, which it divested from in 2018.

She appreciated the company’s shareholders, staff, and management for their continued dedication and contributions to the firm’s growth. The chairwoman announced that the company would mark its 80-year anniversary of existence in Nigeria by September.

“The company is boldly matching on as it continues in its tradition of delivering quality medicines to the Nigerian populace and beyond with the launch of seven new products into our market and region,” she added.

(NAN)