May & Baker (M&B) Nigeria Plc has recorded a profit before tax of N2.1 billion in the 2022 business year and assured shareholders that a withheld portion of their dividends will be used to grow the company.
The M&B Plc Managing Director, Patrick Ajah, gave the assurance to shareholders at the pharmaceutical and beverage company’s 72nd Annual General Meeting, Thursday.
According to a recommendation from the M&B Plc Board of Directors, shareholders received a dividend of 30 kobo for every 50 kobo shares held in the company, amounting to N517 million.
Ajah told the shareholders that the directors recommended a cut in their Earnings Per Share (EPS) so as to keep the company liquid and ensure a profitable business year in 2023.
The Chairman of the board, Senator Daisy Danjuma, reported that the company performed well in the year under review despite a “tough and challenging operating environment.”
Danjuma announced that M&B Plc revenue grew by 20 per cent from N11.9 billion in 2021 to N14.3 billion in 2022, but dropped by 18 per cent in gross profit from N4.7 billion in 2021 to N3.9 billion in 2022.
“This was largely due to (the) higher cost of input materials from Asia, high energy costs and impact on further devaluation of Naira to Dollar,” Danjuma said in her statement.
However, M&B Plc shareholders applauded the chairman of the board for overseeing the profitability of the company in the year under review and also suggested points of improvement.
Abayomi Adebayo of Passion Shareholders probed the board’s promises to shareholders, alongside Gbadebo Olatokunbo who urged them to take the lead in its partnership with the federal government on Biovaccines Nigeria Limited.
Olatokunbo, who is of the Noble Shareholders, also asked the company to invest more in advertising its products, especially the newly released ones.
Kabiru Abdullahi commended the board’s decision to withhold a percentage of the EPS to ensure the company remained profitable, while Robert Igwe indicated his desire to see the company’s Lily Table Water back in stores.
Other shareholders, including Eke Chibuzor, Okezie Boniface, Moses Ayodele and Adetutu Siyonbola pointed the board to areas they should perform better for the benefit of the company.
In his response to the shareholders’ questions, Ajah assured that the Lily Table Water will be back in July, and this time will be fully produced by M&B Plc.
