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May & Baker’s top-line dips following food business disposal

Following the divestment of its foods business which, on average, accounts for 23.36% of its revenue, May & Baker Nigeria Plc recorded a dip of 14.22% in topline from its continued operations, with turnover settling at NGN1.87bn.



May Baker Nigeria Plc

Revenue from Continued Operations Dips: Following the divestment of its foods business which, on average, accounts for 23.36% of its revenue, May & Baker Nigeria Plc recorded a dip of 14.22% in topline from its continued operations, with turnover settling at NGN1.87bn (vs. NGN2.18bn from beverage and pharmaceuticals in Q1:2018).

This was due to the decline in revenue from the two main business segments; revenue from the pharmaceutical unit declined by 14.38%, from NGN2.16bn to NGN1.85bn while a 10.77% drop in revenue was reported from the beverage business segment.

The firm’s poor performance mirrored the weakness in consumer demand and increased competition in the industry. However, the increase in the minimum wage, coupled with the planned expansion of its Paracetamol production line is expected to drive revenue. Hence, we project a modest growth of 8.36% in revenue.

Muted Movement in Margins: On the back of reduced production volumes, costs declined by 22.13% to NGN1.27bn, from NGN1.63bn in Q1:2018 bringing gross margin to settle slightly higher at 32.15% (vs. 31.46% in Q1:2018).

Marketing and distribution expenses moderated by 20.15% to NGN155mn, following reduced promotional efforts by management.

Administrative expenses, however, trended upwards by 13.45%, offsetting the cost savings from marketing expenses. Operating profit, therefore, contracted, as a result of reduced top-line and increased operating expenses.

Further, finance cost declined by 46.57% to NGN64mn (vs. NGN119mn in Q1:2018), on the back of the repayment of overdue loans and borrowings from the proceeds of the 2018 Rights Issue.

Deal book 300 x 250

In 2019FY, we envisage an uptick in costs based on the buildup of several factors: an increase in sales volume of existing products and increased investment in marketing for its products. In this light, we have made a cost-to-sales projection of 63.87% and 12.21% growth in operating expenses.

Additional Ordinary Shares to Dilute EPS: For 2019FY, we have made a profit projection of NGN583mn, which implies a net margin of 6.29%, on the back of the expected improvement in top-line. We also note that the listing of 745mn additional ordinary shares will dilute the EPS in the near-term, delivering NGN0.34 in 2019FY. In view of this, our projected ROE and ROA for 2019FY came in at 10.52% and 5.91% respectively.

Outlook and Recommendation: We expect earnings to remain healthy in the near term, on the back of improved top-line from the firm’s partnerships with the Government and introduction of new products. We arrived at a target price lower than the current price due to the dilutive effects of the Rights issue conducted last year on earnings. Our target price has therefore been reviewed downwards to NGN2.16 on the back of a target P/E of 6.40x and expected EPS of NGN0.34.

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Brokerage and Retail Services
[email protected] (+234 905 569 0627)
[email protected] (+234 7080007861)
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Investment Banking/Corporate Finance
[email protected] (+234 8060110856)
[email protected] (+234 808 536 5766)


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COVID-19 Update in Nigeria

On the 7th of March 2021, 269 new confirmed cases and 5 deaths were recorded in Nigeria



Covid 19 update symptops

The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 158,506 confirmed cases.

On the 7th of March 2021, 269 new confirmed cases and 5 deaths were recorded in Nigeria.

To date, 158,506 cases have been confirmed, 137,875 cases have been discharged and 1,969 deaths have been recorded in 36 states and the Federal Capital Territory.

A total of 1.54 million tests have been carried out as of March 7th, 2021 compared to 1.49 million tests a day earlier.

COVID-19 Case Updates- 7th March 2021,

  • Total Number of Cases – 158,506
  • Total Number Discharged – 137,890
  • Total Deaths – 1,969
  • Total Tests Carried out – 1,544,008

According to the NCDC, the 269 new cases are reported from 19 states- Enugu (78), Bauchi (37), Rivers (22), Imo (18), Ogun (16), FCT (15), Akwa Ibom (13), Kaduna (13), Kebbi (11), Kwara (9), Edo(7), Ekiti (6), Borno (5), Yobe(5), Kano (4) Nasarawa (3), Osun (3), Anambra (2) and Plateau (2).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 56,444, followed by Abuja (19,350), Plateau (8,944), Kaduna (8,658),  Oyo (6,766), Rivers (6,680), Edo (4,670), Ogun (4,437), Kano (3,844), Ondo (3,066), Kwara (2,962), Delta (2,582), Osun (2,457), Nasarawa (2,251), Enugu (2,156), Katsina (2,060), Gombe (2,010), Ebonyi (1,951), Anambra (1,813), Akwa Ibom (1,610), and Abia (1,588).

Imo State has recorded 1,569 cases, Borno (1,308), Bauchi (1,274), Benue (1,188), Adamawa (942), Niger (919), Taraba (863), Ekiti (834), Bayelsa (779), Sokoto (769), Jigawa (496), Kebbi (412), Cross River (334), Yobe (293), Zamfara (222), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

Governor Babajide Sanwo-Olu of Lagos State announced the closed down of the Eti-Osa Isolation Centre, with effect from Friday, 31st July 2020. He also mentioned that the Agidingbi Isolation Centre would also be closed and the patients relocated to a large capacity centre.

Due to the increased number of covid-19 cases in Nigeria, the Nigerian government ordered the reopening of Isolation and treatment centres in the country on Thursday, 10th December 2020.


On 26th January 2021, the Federal Government announced the extension of the guidelines of phase 3 of the eased lockdown by one month following the rising cases of the coronavirus disease in the country and the expiration of phase 3 of the eased lockdown.

On 28th February 2021, the federal government confirmed that the first tranche of Covid-19 vaccines will arrive in Nigeria on Tuesday, March 2nd, 2021.

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On Tuesday, 2nd March 2021, the National Primary health Care Development Agency announced the arrival of the expected COVX Astrazeneca/Oxford covid-19 vaccines.

On Saturday, 6th March 2021, President Muhammadu Buhari and his vice, Yemi Osinbajo received vaccination against the covid-19 as the State House in Abuja.

READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

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Tech News

Twitter CEO auctions his first-ever tweet on Twitter, bidding at $2.5 million

Jack Dorsey is auctioning his first-ever tweet on a website that sells tweets as non-fungible tokens.



Square buys $50 million worth of Bitcoins, Twitter warns political figures to abstain from fake, misleading statements, Has Twitter's Jack Dorsey changed the popular narrative attached to Nigerians?, Twitter forecasts future drop in revenue after milestone record in 2019 Q4 , Twitter founder, Jack Dorsey invest N2.3 million in Nigerian startup, DevCareer , Some Verified accounts may not be able to tweet, as Twitter freezes password reset to address cyberattack

Twitter CEO, Jack Dorsey is auctioning his first-ever tweet on Twitter “just setting up my twttr” on a website that sells tweets as non-fungible tokens (NFTs).

The tweet was listed for sale on ‘Valuables by Cent’ – a tweets marketplace that was launched three months ago. The tweet was first made in March 2006

The tweet received offers as high as $88,888.88 within minutes of Jack tweeting a link to the listing on” Valuables by Cent” on Friday.

Currently, bidding has reached $2.5 million (€2.1 million) indicating the potential in selling virtual objects that have been authenticated through blockchain technology.

The highest bid for the tweet — $2.5 million — came from Bridge Oracle CEO Sina Estavi. It topped cryptocurrency pioneer, Justin Sun’s $2 million bid.

The final buyer of the tweet will receive a certificate, digitally signed and verified by Jack Dorsey, as well as the metadata of the original tweet. The data will include information such as the time the tweet was posted and its text contents. Most of this information, however, is already publicly available.

According to Valuables by Cent’s terms, 95% of a tweet’s sale will go to the original creator while the remainder will go to the website.

What you should know

  • NFTs is a unique digital certificate that states who owns a photo, video, or other forms of online media.
  • Dorsey’s 15-year-old tweet is one of the most famous tweets ever on the platform.
  • Bidding had reached $2.5 million (€2.1 million) on Saturday, indicating the potential in selling virtual objects that have been authenticated through blockchain technology.
  • More people are currently bidding their tweets on the platform.

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