May & Baker hits N142m profit in Q1
Leading player in the fast moving consumer goods (FMCG) industry and healthcare sector has recorded N141.9 million in profit at the end of first quarter of 2018.
The organization recorded this great improvement on its bottom-line due to the reduction in operating cost.
Despite a 0.57 percent limp in revenue the drug maker reported a 485.03 percent surge in profit after tax to N141.9 million from N24.1 million the same period last year representin 488 percent increase over profit in first quarter of 2017.
Revenue from sales rose to N13.604 million from N2.375 billion, driven by the pharmaceuticals segment, which contributed N2.163 billion or 91.05 percent of total revenue; up from N1.854 billion or 78.52 percent of prior Q1.
The Beverage segment followed with N18.748 million, up from N15.342 million, while the foods segment dipped 153.9 percent from N491.932 million, to N193.745 million.
By geography, sales revenue from the company‘s eastern Nigerian market remained the biggest contributor at N879. 483 million, even as it dropped to N999.796 million; Lagos accounted for N770.054 million, up from N754.335 million; ahead of N413.51 million from western Nigeria, compared to N362.103 million from that region before; while N312.713 million came from the north as against N245.922 million in 2017 Q 1.
May & Baker share price has risen 9.23 percent this year, outperforming the NSE All share index at 7.42 percent. It was priced at N2.80 as at the close of trading on Lagos on Monday; with a market capitalization standing at N2.783 billion.
The drug maker divested from the Noodles business in a N775 million deal between May & Baker and De-United Foods Industries Limited (DUFIL), owners of indomie Noodles, where the former sold its food production line to the latter. the divestment provided much needed cash for the company, and will also reduce the losses sustained before.
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