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May & Baker grows Q3 profit to N744.3m

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May & Baker grows Q3 profit to N744.3m

May & Baker Nigeria Plc has recorded a growth in profitability in the third quarter ended September 30, 2018, as total comprehensive profit grew by 240.65 per cent to N744.33 million. Key underlying profitability ratios showed pre-tax profit margin almost on a double at 9.32 per cent in third quarter 2018 as against 4.65 per cent recorded in third quarter 2017. According to the company in a statement, operating profit margin lent credence to the improving profitability of the core operations of the company rising from 11.13 per cent to 13.65 per cent. Gross profit margin had improved from 31.11 per cent to 36.47 per cent, underlining the cost-effectiveness of the top-line strategy. Gross profit rose by 10.6 per cent from N2.156 billion in third quarter 2017 to N2.385 billion in third quarter 2018.

Operating profit also increased by 15.83 per cent from N770.71 million to N892.75 million. With finance cost dropping by 37.25 per cent from N479.60 million in third quarter 2017 to N300.94 million in third quarter 2018, profit before tax jumped by 89.19 per cent to N609.94 million as against N322.39 million recorded in comparable period of 2017.

Profit after tax from continuing operations also leapt by 89.82 per cent from N218.505 million to N414.76 million. With the addition of net profit of N329.57 million from discontinued operation, total net comprehensive income grew by 240.65 per cent to N744.33 million in 2018 as against N218.505 million in 2017. Turnover dropped marginally by 5.63 per cent from N6.93 billion to N6.54 billion.

The company had during the period divested and sold its noodles business as part of its strategic focus on its core healthcare business. Earnings per share, based on continuing operations, increased by 89.78 per cent from 22.30 kobo in 2017 to 42.32 kobo in 2018. On the basis of total net comprehensive income, earnings per share jumped by 240.58 per cent to 75.95 kobo in third quarter 2018 as against 22.30 kobo in third quarter 2017. The company noted the continuing strong bottom-line performance places May & Baker Nigeria on a stronger footing to sustain its recent dividend payment records. May & Baker Nigeria had in 2017 increased cash dividend by 233.3 per cent to 20 kobo per share compared with 6.0 kobo per share paid for the 2016 business year.

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