May & Baker Nigeria Plc delivered a robust financial performance in 2025, posting a profit before tax of N6.5 billion, a 154 per cent increase over the previous year's figure, as the pharmaceutical company weathered economic challenges and strengthened its operations.
The strong earnings performance was unveiled at the company's Annual General Meeting in Lagos, where shareholders approved a dividend payout of N862.6 million for the 2025 financial year.
The dividend translates to 50 kobo per ordinary share, representing a 25 per cent increase from the 40 kobo distributed to shareholders for the 2024 financial year.
Speaking at the meeting, the Chairman of the Board, Daisy Danjuma, said the company's profit after tax rose sharply to N4.4 billion from N1.6 billion recorded a year earlier, representing a 173 per cent growth.
She added that earnings per share climbed to 257 kobo in 2025 from 94 kobo in 2024, reflecting the significant improvement in the company's bottom line.
Danjuma noted that the growth in profitability also resulted in higher tax payments, with total tax expenses increasing by 119 per cent to N2.1 billion from N952 million in the preceding year.
According to her, the increase was driven by improved earnings performance as well as deferred tax obligations.
The chairman also highlighted the contribution of the company's subsidiary, Osworth Nigeria Limited, which continued to support overall group performance.
She disclosed that the subsidiary generated revenue of N4.1 billion during the year, compared to N2.8 billion in 2024, while its profit after tax rose by 62 per cent to N468 million.
Danjuma reiterated management's commitment to sustaining growth and exploring opportunities beyond Nigeria, particularly within the sub-Saharan African market.
On the operating environment, Managing Director Patrick Ajah said the company continued to engage policymakers and regulators to address challenges facing local pharmaceutical manufacturers.
He pointed to the Federal Government's executive order granting duty waivers on selected pharmaceutical raw materials and active pharmaceutical ingredients as one of the outcomes of such engagements.
Ajah, however, said the measure had only offered modest relief to manufacturers.
"The policy has provided some relief, although its impact remains limited as the savings amount to about 7.5 per cent," he stated.
Responding to shareholders' questions on debt recovery and receivables management, Ajah assured investors that the company maintains a strict monitoring framework to safeguard its financial position.
Looking ahead, he revealed that May & Baker is preparing a new strategic growth plan to succeed its current corporate roadmap, which expires this year.
According to him, the company intends to hold a strategic planning retreat before year-end to develop a fresh three-to-five-year blueprint that will guide expansion efforts and improve shareholder value.
Shareholders who spoke at the meeting commended the board and management for delivering strong results despite the difficult business environment, expressing optimism about the company's future growth prospects.
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