May & Baker Nigeria Plc says its business performance in the first half of 2016 has raised the prospects of good returns in the ongoing business year.
The healthcare group said it rode against the industry and macroeconomic headwinds to sustain appreciable growth in its performance in the first half of this year as it continued to benefit from improving cost and operating efficiencies.
Key extracts of the interim report and accounts of the group for the six-month period ended June 30, 2016 showed that turnover rose by nine per cent.
The group results showed that turnover rose to N3.70bn in first half of 2016 compared with N3.41bn in the first half 2015.
The company said it sustained growth in pre- and post-tax profits, as it reduced its finance cost and distribution, sales and marketing expenses by 10 per cent and 12 per cent, respectively.
However, cost of sales grew by 16 per cent from N2.25bn to N2.60bn due to increases in material costs, devaluation of the naira and high power cost driven by rampant gas outages. This affected gross profit, which reduced from N1.16bn in the first half 2015 to N1.1bn in the first half 2016.
The company said it had continued to benefit from its management’s focus on overall operational efficiency with its administrative expenses rising on the back of the jumpy inflation from N263.45m to N309.48m as the distribution, sales and marketing expenses dropped by 12.4 per cent from N583.20m to N510.84m.
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