MAY & BAKER'S CAKE HARDTO BAKE.

In 2016 financial year, May & Baker Nigeria PLC is finding it hard to bake the cake to share to shareholders.

According to figures for the half year to June published recently, the main problem is that major cost components were under pressure while core income growth was single digit.

Within the half year, core revenue increased by 8.63% to N3702.9m while total income closed 12.4% up at N3723.5m driven by far more hefty higher rise in income from other sources.

Investment income had risen by 26.9% to N11.1m while income from other sources closed 48.6% up at N9.51m.

Even though drop in distribution cost to N510.8m and in finance cost to N255.8m helped matters further,  the profit for the period came to only N44.2m, down 69% on previous first half.

This was because 15.7% increase in cost of sale to N2603.5m and 17.5% rise in administration expenses to N309.5m, made a mess of all gains.

This meant that by half year to June, at 1.19%, May & Bakers profit margin was too close to red ink and when compared to 4.16% previously represents significant drop.

MAY & BAKER NIGERIA: Nm
                           Half year
                          2016.           2015
Total income  3723.5.        3423.9
Core income.  3702.9.        3408.7
Cost of sale.   2603.5.        2249.4
Other income     9.51.           6.40
Distribution cost 510.8.      583.2
Administration    309.5.      263.4
Finance costs     255.8.       284.4
Investment inc.   11.1.          8.75
Profit b4 tax.        44.2.       142.4

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