Earnings Update | MAYBAKER | 2020FY

MAYBAKER experienced a turning point in 2020FY, following two consecutive years of revenue contractions. Topline expanded in double digits, up by 16.21% YoY to NGN9.39bn, fueled by the 16.46% growth in revenue from the pharmaceutical division (NGN9.32bn from NGN8.00bn in 2019FY). An increase in health consciousness amongst the populace considering the COVID-19 pandemic, coupled with the associated rise in the demand for drugs and other pharmaceutical products, contributed to the positive performance recorded by the firm during the year. On the contrary, the pandemic-induced constraints on distribution chains suppressed revenue from the firm’s beverage division- Lily Water. Revenue from this unit shrank by 9.64% to NGN69.74mn from NGN77.18mn in 2019FY. Going forward, we expect the uptick in the firm’s demand to be sustained and supported by the essential nature of the firm’s products and the improving level of health consciousness amongst the populace. Waning consumer wallets and competitive pressures, however, pose a downside risk to our optimistic revenue projection (up by 14.50% to NGN10.75bn.

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Earnings Update -MAYBAKER 2020FY


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