May & Baker Nigeria Plc, a leading pharmaceutical firm, has announced a significant 32 per cent increase in its revenue for the 2025 financial year, reaching a total of N33.9 billion. The company's management has expressed strong confidence in surpassing this figure in 2026, setting an ambitious target of N42.3 billion.
Drivers of Growth and Strategic Investments
The revenue growth was attributed to several key factors, including foreign exchange stability, the zero per cent tariff policy, increased market penetration, and robust internal resilience. Targeted efforts to boost overall sales also played a crucial role in achieving this milestone.
In a move to strengthen distributor relationships, May & Baker disbursed over N300 million as incentives to its distributors during the period. The company plans to scale up this incentive programme to over N600 million in 2026. Additionally, it has allocated N1.16 billion for promotions, advertising, and marketing activities, marking an increase from the more than N800 million spent on similar initiatives in the previous year.
Leadership Insights and Economic Challenges
At a customers' forum themed 'Working Closely To Thrive' held in Ikeja, Managing Director Patrick Ajah commended the dedication of distributors and customers for sustaining the company's growth. However, he acknowledged significant challenges ahead, citing Nigeria's economic difficulties and the ongoing Middle East crisis.
Ajah highlighted a sharp increase in the price of paracetamol raw materials, which nearly doubled within two weeks. "Before now, per kg, we were paying $2.90. As I speak, we are quarreling with them because they said it's $6.50. It's after a lot of fights that it came down to $5.90," he stated.
He emphasised the need for strategic planning, urging that politics should not compromise public health or the distribution of essential pharmaceutical products. Ajah lamented Nigeria's heavy reliance on imported Active Pharmaceutical Ingredients (APIs) and called on the Federal Government to support local production.
Call for Government Support in API Production
Ajah pointed out that while companies like Emzor have invested in API production, progress is hindered by exorbitant borrowing costs. Loans with interest rates as high as 33 per cent make it nearly impossible for manufacturers to break even, especially in the capital-intensive API sector.
"Government needs to really prioritise the healthcare sector and if anybody is going to do API in this country, they must support the person with zero duty with maximum 2.5 per cent or less than five per cent," he stressed.
He further explained that API production requires long-term investment, often taking up to three years before any returns are realised, with additional years needed to achieve profitability.
Confidence in Future Projections
Head of Sales Chiagozie Maduneme expressed confidence in the realism of the N42.3 billion revenue projection for 2026, despite the prevailing economic challenges. He affirmed that with continued strategic efforts and resilience, the target is achievable.
The company's proactive measures, including increased marketing spend and distributor incentives, underscore its commitment to driving growth and navigating the complex economic landscape in the coming year.
