Leading drugmaker, May & Baker Nigeria Plc, has reported an 84% rise in its Profit After-Tax (PAT) for Full Year 2019 amidst a revenue crunch that reduced its earnings by as much as N471.656 million year on year.
The highlights of the company’s financials in the period under review are contained in its Unaudited Consolidated Financial Statements 31 December 2019, published on the website of the Nigerian Stock Exchange (NSE) Friday.
Revenue dipped by 5.5% from N8.552 billion at FY2018 to N8.081 billion at FY2019.
Profit Before Tax, however, rose modestly from N817.912 million at FY2018 to N924.824 million in the same period of 2019, reflecting a 12% appreciation.
Profit After Tax (PAT) grew by 83.5% from N342.686 million at FY2018 to N628.880 million at the end of December 2019.
Basic Earnings Per Share inched up by 4.2% to 36.45k at FY2019 from 34.97k at FY2018.
Though the pharmaceutical did not give specific reasons for the contraction in its revenue on the income statement, it is safe to say that the development was informed by weak returns from its streams of income.
Yet, cuts in its cost of doing business largely impacted its profit margin in the review period. In specific terms, May & Baker slashed its Cost of Sales from N5.389 billion at FY2018 to N5.144 billion in the corresponding period last year.
There was also a reduction in its Distribution, Sales and Marketing Expense from N1.175 billion at FY2018 to N1.162 billion at FY2019, and Administrative Expenses from N1.067 billion at FY2018 to N804.880 million at the end of last year.
A drop from its Current Tax Expense from N475.226 million to N295.944 million at FY2018 and FY2019 respectively also contributed to the growth in profit.
The company currently trades on the floor of the NSE at 2.02 per share.
Earnings Per Share is the profit that each unit of a company’s ordinary shares yields during a particular period. It is simply calculated by dividing the Profit After Tax by the company’s total outstanding shares. Increase in a company’s EPS often reflects an improvement in its bottom-line while a fall, on the other hand, indicates a declining profit.
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