May & Baker’s shareholders approve N517.6m dividend
Shareholders of May & Baker Nigeria Plc have approved a dividend of 30 kobo for every 50 kobo share recommended by the company’s board of directors for the 2020 financial year.
The dividend, which amounts to N517.6m, was approved at the company’s 70th Annual General Meeting in Lagos, according to a statement on Sunday.
The Chairman, Board of Directors, Senator Daisy Danjuma, was quoted as saying at the AGM that she was glad that the company recorded growth in both turnover and profit, despite the challenging operating environment in the business year under review.
The company reported a 16 per cent growth in revenue from N8bn in 2019 to N9.4bn in 2020 and a gross profit growth of 30 per cent from N2.9bn to N3.8bn.
Its profit before tax grew by 39 per cent from N901m in 2019 to N1.2bn in 2020.
The company said a 54 per cent jump in taxation from N184m to N283m reduced its profit after tax. It recorded net profit growth of 35 per cent from N716m in 2019 to N965m in 2020.
Its 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 hyperinflation prevalent in the economy combined with foreign exchange scarcity increased the cost of operations.
She said the company’s cost of sales rose by eight per cent from N5.2bn in 2019 to N5.6bn in 2020.
The Managing Director/Chief Executive Officer, Mr Patrick Ajah, said the year 2020 was one of the most challenging.
He said the company’s growth strategies showed commendable resilience and continued to gain traction, adding that these were pointers to its general operating efficiency and indication that its 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,” he said.
According to the statement, shareholders praised the company for the steady growth in dividends paid yearly.
While speaking, Sir Sunny Nwosu commended the board and the management of the pharmaceutical company for its performance, adding that the company must make efforts to take advantage of openings in vaccine production, on account of its existing joint venture with the Federal Government for local vaccine production.