May & Baker Nigeria Plc has recorded a revenue of N6.36 billion for the year ended December 31, 2013, up from N5.67 billion in 2012. Gross profit rose by 9.2 per cent from N2.07 billion to N2.26 billion. However, cost of sales increased by 14 per cent from N3.59 billion in 2012 to N4.107 billion in 2013.
May & Baker controlled its distribution, marketing and sales expenses, leading to a marginal increase from N1.26 billion to N1.29 billion on the N1.26 billion.
Administrative expenses reduced from N588.5 million in 2012 to N552.09 million in 2013.
Gross profit margin was steady at 35.5 per cent in 2013 as against 36.5 per cent in 2012. Similarly, operating margin, which measures average profit on each unit of sales before deduction of taxes and finance charges and addition of non-operational incomes, improved from 4.1 per cent in 2012 to 10 per cent in 2013.
However, financing costs put pressure on its profitability, rising by 34.3 per cent from N469 million in 2012 to N630.71 million. Consequently, the company ended the year with a loss of N103 million compared with a profit of N76 million in 2012.
Apparently to reduce the cost of finance, the company intend returning to the capital market for funds.
The Managing Director/Chief Executive Officer of May & Baker, Mr. Nnandi Okafor recently said the company had undertaken several significant investments in recent period through its internally generated revenue and borrowed funds noting that the recovery in the capital market provides opportunity to better funding through the market.
The company had raised her capacity to produce more products with the construction of a world-class pharmaceutical centrelocated in Ota Ogun State. The PharmaCentre is currently undergoing the process of World Health Organisation (WHO) pre-qualification which will make its products to be internationally accepted, a situation no Nigerian pharmaceutical company currently enjoys.
According to analysts, the WHO prequalification will help Nigeria become self-sufficient in the manufacture of essential medicines and invariably have multiplier effects on the economy notable among which will be job creation and increased foreign exchange earnings.