May & Baker eyes aggressive expansion strategy at 75th AGM

-As shareholders applaud management

May & Baker Nigeria PLC held its 75th Annual General Meeting (AGM) in Lagos at the weekend, where the company’s shareholders commended the company’s board and management for delivering strong financial and operational performance.

In an interview session with newsmen at the AGM, the management of the pharmaceutical giant unveiled expansion plans, increased production capacity and export growth. Some of the shareholders who could not hide their feelings commended the management of the company for a good job, saying the company is well run and going stronger.

The Chairman of May & Baker Nigeria Plc, Senator Daisy Danjuma, said despite the challenging business environment, particularly foreign exchange instability and rising operating costs, the company recorded impressive performance in 2025, enabling it to pay improved dividends and strengthen shareholder value.

She attributed the company’s sustained success to its commitment to quality, innovation and efficient management, noting that the company has remained a trusted healthcare brand since its establishment in 1944.

She described May & Baker as the first pharmaceutical company in West Africa and said generations of Nigerians have continued to rely on its products because of the company’s unwavering commitment to quality standards.

“Our shareholders are happy, and the company has also performed strongly in the stock market. This growth is the result of the efforts of the board, management and staff, who have worked hard to sustain and expand the business,” she said.

The chairman noted that the company was introducing new products, investing in new machinery and expanding its operations to support future growth, and according to her, the expansion drive will not only increase production capacity but also create employment opportunities and contribute to economic development.

She stated that as the company grows, more people are employed and more opportunities are created, adding that May & Baker remains committed to improving healthcare delivery through the production of quality medicines trusted by Nigerians.

Senator Danjuma, however, called for stronger government support for local pharmaceutical manufacturers, citing inadequate power supply and infrastructure deficits as major constraints to industry growth.

She said manufacturers continue to spend enormous resources on generators, diesel and alternative energy sources to keep production lines running, stressing that stable electricity and improved infrastructure would significantly enhance the competitiveness of the sector.

Addressing also speaking, the Managing Director and Chief Executive Officer, Pharm. Patrick Ajah, said the company remained focused on long-term growth despite prevailing economic challenges.

Pharm. Ajah disclosed that the company benefited from improved foreign exchange stability over the past year, which enabled better planning and reduced the need for constant price adjustments. He specifically said May & Baker’s revenue grew from N28 billion to N38 billion during the period under review, driven by strong demand for its products.

According to him, management concentrated on expanding existing operations rather than embarking on entirely new projects, investing heavily in machinery to increase production capacity. He noted that demand for the company’s bottled water and paracetamol products continues to exceed supply despite the acquisition of additional equipment.

The CEO revealed that the company is planning major investments in new facilities between this year and next year as part of efforts to sustain growth and meet increasing market demand.

On regional expansion, Pharm. Ajah said the company was actively exploring opportunities under the African Continental Free Trade Area (AfCFTA) and pursuing product registrations in several African countries.

He disclosed that the government of the Benin Republic had invited May & Baker to establish a manufacturing facility within its free trade zone, adding that the proposal was currently being evaluated.

The CEO also explained that progress was being made on the company’s vaccine manufacturing project, although critical government support required for its commencement was still being awaited. He expressed optimism that shareholders would receive positive updates on the project before the end of the year.

Responding to concerns over the 50 kobo dividend payout, Ajah explained that the company had retained significant funds to support working capital requirements, machinery replacement and future expansion projects.

He noted that rising raw material prices, escalating energy costs and high commercial lending rates had increased pressure on operating cash flows. According to him, monthly electricity costs have risen from about N100 million to nearly N170 million, prompting the company to explore solar energy solutions to reduce costs.

Ajah also assured shareholders that management was developing a new three-to-five-year strategic plan to guide the company’s next phase of growth and expansion.

The AGM ended with shareholders expressing confidence in the board and management, while endorsing strategies aimed at strengthening local manufacturing, expanding exports and positioning the company for sustainable growth in Nigeria and across Africa.