Shareholders of May & Baker Nigeria Plc have given their approval for a total dividend payout of N517.57 million for the financial year that ended on December 31, 2022. This announcement was made during the company’s 72nd Annual General Meeting (AGM) held on Thursday in Lagos, according to a report by the News Agency of Nigeria (NAN).
The approved dividend, which is subject to applicable withholding tax, translates to a payout of 30k for every 50k share owned by the shareholders. The approval reflects the company’s commitment to rewarding its shareholders amidst a challenging operating environment.
Sen. Daisy Danjuma, the Chairman of the Board of Directors, expressed satisfaction with the company’s performance despite the tough conditions. She highlighted that May & Baker Nigeria Plc witnessed a 20 percent increase in revenue, reaching N14.3 billion in 2022 compared to N11.9 billion in 2021.
However, Danjuma also mentioned that the company’s gross profit declined by 18 percent from N4.7 billion in 2021 to N3.9 billion in 2022. She attributed the drop to several factors, including higher input material costs from Asia, increased energy expenses, and the impact of the Naira’s devaluation against the dollar.
Danjuma elaborated on the challenges faced by May & Baker Nigeria Plc, stating that these factors led to a significant rise in the cost of sales, which grew by 45 percent from N7.2 billion in 2021 to N10.5 billion in 2022.
Addressing the shareholders, Danjuma provided an update on the progress of Biovaccines Nigeria Ltd., a joint venture between May & Baker Nigeria Plc and the Federal Government of Nigeria for the local production of vaccines. She stated that the groundbreaking for the construction of the vaccines factory would take place this year. The delay in the groundbreaking was attributed to the start of electioneering campaigns and preparations for a change in administration.
Looking ahead, Danjuma expressed optimism about the company’s future prospects. She informed the shareholders that May & Baker Nigeria Plc is currently focused on increasing its production capacity for pharmaceuticals. Danjuma also mentioned the near completion of the company’s new water-bottling factory in Ota, which aims to revive its water business, known as Lily Table Water.
She concluded her speech by commending the dedication and contributions of the staff and management in driving the company’s growth.
Mr. Patrick Ajah, the Managing Director/Chief Executive Officer of May & Baker Nigeria, assured shareholders of the company’s commitment to delivering enhanced performance in the coming years. Ajah emphasized that the company would continue to adopt growth strategies to ensure a strong and impressive performance.
During the AGM, shareholders also expressed their satisfaction with the company’s improved performance during the period under review. Mr. Robert Igwe commended the management for their efforts and applauded the company’s consistent dividend payment despite the challenging operating environment. Mr. Boniface Okezie, the National Coordinator of the Progressive Shareholders Association of Nigeria, praised May & Baker Nigeria for developing new products aimed at increasing its market share. He also acknowledged the company’s growth in both turnover and profit despite the challenging business landscape.