Following in the footsteps of the other indigenous pharmaceutical companies listed on the Nigerian Stock Exchange; NEIMETH and FIDSON, May & Baker Nigeria Plc (NSE: MAYBAKER) reported that the company maintained its revenue for the second quarter of the year, recording a marginal growth of 2.57% from the Q2 2019 figures.
This was contained in the unaudited consolidated financial statements for the first half ended 30 June, 2020 released earlier to the Nigerian Stock Exchange and the investing public.
In the half year period, MAYBAKER recorded a revenue of N4.072 billion (N4.038 billion from pharmaceuticals segment of the business and N34.205 million from the beverages segment), a 0.41% increase from the N4.055 billion revenue reported in H1 2019.
With a 9.28% reduction in its cost of sales, the company was able to report a 20.45% increase in the Gross Profit; N1.592 billion up from N1.321 billion reported in preceding financial year.
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A further reduction in the administrative expenses, 26.68% drop and a 62.39% reduction in the finance cost improved the company’s profit for the year. The profit for the first half of the year as reported is N438.886 billion, a 50.91% increase from the N290.826 billion recorded in H1 2019.
A review of the company’s balance sheet showed that the total asset as at 30 June 2020 remained around the same figure as it was as at 31 December 2019. The asset is being funded by approximately 50% by Shareholders equity, and 50% by liabilities, both of which did not see any significant change.
A study of the cash flow statements show the company generated 50% less cash from its operating activities, and decreased its investment in the purchase of property, plant and equipment. It reported a positive cash flow from financing activities, propelled by the N1.000 billion cash from loan received.
- Net cash from operating activities is N538.38 million (N1.094 billion as at 31 Dec. 2019)
- Net cash used in investing activities is N164.278 million (N1.162 billion as at 31 Dec. 2019)
- Net cash gotten from financing activities is N636.185 million (N1.112 billion as at 31 Dec. 2019)
In the second quarter period April to June, the company reported only a 2.57% growth in revenue, from N2.186 billion in Q2 2020 to N2.242 billion in Q2 2020. By prudent cost management, the company was able to boost its profit for the period by 151.91% to N396.088 million, from the N157.236 million reported in Q2 2019.
May & Baker Nigeria Plc was incorporated as a private limited liability Company in NIgeria on September 4, 1944 and commenced business on the same date. It was listed on the Nigerian Stock exchange in 1994.
The Company is involved in the manufacture, sale and distribution of human pharmaceuticals, human vaccines and consumer products. Registered business address is 3/5 Sapara Street, Industrial Estate, Ikeja , Lagos, Nigeria.
May & Baker Nigeria Plc had on December 17, 2019 announced that it has signed a manufacturing agreement with Sanofi Nigeria Limited, a subsidiary of the French Pharmaceutical giant – Sanofi. Under the agreement MAYBAKER will use its WHO certified manufacturing facility to produce four product brands of Sanofi for sale in Nigeria and the West African market.
Analysts at Investogist have a BUY on the stock, with a fair price value range between N1.56 – N1.90. This is a pharmaceutical company, given the incentives and support being given to pharmaceutical companies to boost domestic manufacturing of critical drugs and vaccines to ensure their sustainable domestic supply, the company is likely to be shielded from any COVID-19 impact.
Source: Mytradebook
Written by;
Nnamdi M
