May & Baker’s 9M pre-tax profit rises 81.5% to N8.92 billion

May & Baker Nigeria Plc reported a profit before tax of N8.92 billion for the nine months ended September 2026, representing an increase of 81.5% from N4.92 billion in the corresponding period of 2025.

In the third quarter, pre-tax profit rose to N4.07 billion from N1.70 billion a year earlier.

The pharmaceutical and consumer products manufacturer recorded higher revenue and profit after tax during the period, while its borrowings declined year on year.

However, rising inventory levels and increased trade payables were notable balance-sheet movements, while cash generated from operations improved compared with the corresponding period of 2025.

Key Highlights

• Revenue: N30.97 billion (Up 4.89% YoY from N29.53 billion).
• Pre-tax profit: N8.92 billion (Up 81.53% YoY from N4.92 billion).
• Profit after tax: N5.89 billion (Up 76.19% YoY from N3.34 billion).
• Earnings per share (EPS): 341.33 kobo (Up 76.19% YoY from 193.73 kobo).

Driving the numbers

May & Baker’s revenue increased by 4.89% to N30.97 billion during the first nine months of 2026. The company operates pharmaceutical and beverage segments, with pharmaceuticals accounting for the overwhelming majority of reported segment revenue.

The segment disclosure lists pharmaceutical revenue of N30.87 billion and beverage revenue of N632.21 million for the nine-month period.

Pharmaceuticals therefore represented the dominant contributor to the company’s business activity, while the beverage segment remained considerably smaller.

• Profitability improved more quickly than revenue. Profit before tax increased by 81.53% to N8.92 billion, while profit after tax rose by 76.19% to N5.89 billion.
• The stronger growth in earnings relative to sales indicates an improvement in reported profitability.
• Finance income was N861.93 million for the nine-month period, compared with N412.84 million in the corresponding period of 2025.
• The company’s notes state that this income was earned on short-term investments, including fixed deposits with commercial banks. Finance costs were N368.47 million, compared with N541.65 million a year earlier.
• The combination of higher finance income and lower finance costs supported the company’s earnings performance.

The balance sheet shows a significant expansion in inventories, which increased to N9.71 billion in September 2026 from N5.35 billion a year earlier.

• Trade and other payables also rose to N7.73 billion from N3.20 billion over the same period. These movements are important because inventory growth ties up working capital, while higher payables represent amounts owed to suppliers and other creditors.
• Borrowings declined to N3.25 billion from N6.42 billion in September 2025, reducing the company’s reported debt burden. At the same time, property, plant and equipment increased to N7.67 billion from N6.37 billion, consistent with a larger reported asset base.

Cash flow provides a further indication of the company’s financial position. Net cash from operating activities increased to N5.25 billion from N2.13 billion in the corresponding period of 2025.

• The improvement suggests stronger operating cash generation, although the substantial increase in inventory and payables remains relevant to assessing the quality and sustainability of working-capital management.
• The company spent N2.04 billion on property, plant and equipment during the nine months, compared with N1.01 billion a year earlier. Net cash used in investing activities was N1.14 billion, while financing activities used N3.52 billion, including N862.62 million in dividends paid.
• Cash and cash equivalents consequently increased by N589.19 million during the period, ending September at N7.16 billion.

Overall, the financial statements show stronger earnings, improved operating cash flow and lower borrowings. Investors will nevertheless need to monitor inventory accumulation, supplier liabilities and the company’s ability to sustain earnings growth while funding its operational and investment requirements.

Balance Sheet

On the balance sheet, total external debt dropped to N3.25 billion as of September 2026, comprising N1.57 billion in current borrowings and N1.68 billion in non-current borrowings. This was down 49.34% from N6.42 billion a year earlier.

Total assets rose to N34.46 billion, up 33.80% from N25.75 billion in September 2025, while cash balance increased to N7.16 billion, up 32.36% from N5.42 billion in September 2025.

Market reaction

The financial statements record a share price of N39.20 as at 30 September 2026, compared with N16.30 as at 30 September 2025.

This represents a year-on-year increase of approximately 140.49% between the two reporting dates.