By Lexi Elo
May and Baker Nigeria Plc has recorded a 90 percent growth in profit for the year ended December 31, 2014, recording a Profit Before Tax profit of N101.1 million according to audited report and accounts of the company made available by the Nigerian Stock Exchange (NSE). The company made a pre-tax loss position of N11.4 million in the year ended December 2013.
In the financial year under review, Profit After Tax rose by 161 per cent from a negative of N103 million in 2013 to a positive of N63 million in 2014. This was achieved on a group turnover of N7 billion, against N6.3 billion in 2013, a growth of 10.2 per cent.
Cost containment and efficient resource utilization were responsible for the positive signals by way of reduced financing charges, distribution, sales and marketing expenses all which combined to deliver healthier bottom-line.
A growth of 10.2 per cent in sales for the group, as the company boosted its operational profitability with 16.2 per cent increase while sales and marketing expenses dropped by 3 per cent and finance costs also dropped by 4.2 per cent. However, finance cost still remains a challenge to the company.
May and Baker completed in June 2011 the construction of its new pharmaceutical centre known as the PharmaCentre located in Ota Ogun State, which was financed largely by loans during the 2008-2009 capital market recession. The facility raised May and Baker’s production capacity by over 60 per cent.
Finance costs rose by 34.3 per cent to N630.71 million in 2013 compared with N469.63 million in 2012, while the company provided about N240 million annually in 2013 and 2014 out of its gross profit for the depreciation of the new pharmaceutical facility with monthly depreciation average of N19.8 million. Depreciation on the new plant started in second quarter of 2012.