May & Baker Nigeria Plc, Nigeria’s oldest pharmaceutical company, grew its profit by 14 per cent in the third quarter as it continued to draw on its operating efficiency and stronger financial position to mitigate macroeconomic headwinds.
Key highlights of the unaudited report and accounts of May & Baker Nigeria for the nine-month period ended September 30, 2019 released at the Nigerian Stock Exchange (NSE) showed that profit before tax rose by 14.2 per cent to N696.44 million in third-quarter 2019 as against N609.94 million recorded in corresponding period of 2018. Net profit after tax also rose by 14.2 per cent from N414.76 million in 2018 to N473.56 million in 2019.
This was achieved despite a drop in revenue from N6.54 billion for the nine months of 2018 to N5.91 for the comparable period in 2019, a general industry trend attributed to declining in consumer purchasing power, industry regulatory headwinds and unfavourable macroeconomic conditions.
Underlying financial indices indicated that the actual profit growth was driven by improved operating and cost efficiency with the healthcare company making more profit per unit of sale in the period under review compared with the comparable period of 2018.
Pre-tax profit margin, which measures underlining profit-making capacity of the company, improved by three percentage points to 11.8 per cent in the third quarter of 2019 as against 9.3 per cent in the third quarter of 2018. Net profit margin also improved by almost two percentage points from 6.3 per cent to 8.0 per cent.
Managing Director, May & Baker Nigeria Plc, Mr Nnamdi Okafor said the continuing improvement in the profitability of the company underscores the success of strategic initiatives aimed at optimising value for all stakeholders.
He said the company has been positioned for sustained growth noting that ongoing investments in additional production capacity and investment in marketing and promotions among other strategic initiatives would provide an impetus for growth in the years ahead.
Okafor added that the company has continued to explore opportunities to broaden its products base and top-line including recent investments in new pharma, nutraceutical and herbal products that are expected to further diversify revenue base over time.
The board and management remain committed to sustaining our leadership position in the healthcare industry while delivering greater values for all our stakeholders, Okafor said.