May & Baker Nigeria Plc posted a strong performance in the first half of 2025, with after-tax profit rising by 49 percent to N2.19 billion from N1.46 billion recorded in the same period of 2024.
The profit growth was driven by a combination of double-digit revenue expansion, improved operating efficiency, and higher interest income.
According to the company’s financial statement released on Tuesday, revenue rose by 38 percent year-on-year to N19.28 billion in the six months ended June 30, 2025, up from N13.97 billion in H1 2024.
The company’s pharmaceutical division accounted for over 99 percent of total revenue, delivering N19.1 billion in sales, while the beverage unit contributed N183.8 million.
The revenue surge was broad-based across all regions, with the Lagos and eastern markets leading the pack. Lagos contributed N6.07 billion, followed by the eastern region with N6.29 billion in sales.
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Efficiency gains drive operating profit
May & Baker’s gross profit jumped by 53 percent to N6.67 billion, reflecting improved cost management and stronger pricing power. Operating profit rose to N3.37 billion, a 53 percent increase from N2.2 billion in the same period last year.
This was despite rising costs in distribution, marketing, and administration, which collectively amounted to N3.34 billion and came amid ongoing inflationary pressures in Nigeria.
Another key driver of profitability was a sharp rise in interest income, which jumped to N240 million in H1 2025 from N152.5 million in the same period last year.
This helped offset an increase in finance costs, which rose to N394 million from N202 million, due to higher borrowings and elevated interest rates.
Bottom line strengthens despite tax pressures
Profit before tax rose by 49.5 percent to N3.21 billion, from N2.15 billion in the corresponding period of 2024. After accounting for a tax charge of over N1 billion, May & Baker closed the half-year with a net profit of N2.19 billion.
Read also: Guinness reports N16.2bn H1 profit, stocks up 51.53% YtD
Earnings per share climbed to N126.68 kobo from N84.73 kobo, signalling improved returns to shareholders.
Borrowings rose significantly to N7.88 billion in H1 2025, from N5.56 billion in December 2024, highlighting the company’s increasing reliance on debt financing. Deferred income, largely government grants related to asset purchases, also rose to N872 million from N270 million in the prior year.
Cash and cash equivalents improved to N4.81 billion, up from N4.27 billion in June 2024, suggesting improved liquidity despite higher operational and investment outflows.
The company, with a market capitalisation of N1.7 billion, had a share price as of July 29th that stood at N18.1.
