Debt now weighs heavily on May & Baker Nigeria Plc.
In the first half of 2025, the pharmaceutical company increased borrowings by 28% to ₦8.43 billion, while finance costs jumped 77% to ₦434 million.
Because interest rates remain above 26%, loan servicing directly eats into performance.
Strong Earnings
At the same time, the business delivered strong results.
Profit after tax soared 150% to ₦876.6 million as revenue climbed 43% to ₦10.23 billion.
In addition, gross profit advanced 64% to ₦3.98 billion, lifting margins to 39%.
Operating profit nearly doubled to ₦1.43 billion, proving that efficiency gains matched sales momentum.
Liquidity Strains
However, the earnings strength did not flow into cash.
Net cash from operations fell into negative territory at ₦1.46 billion, compared with an inflow of ₦3.0 billion a year earlier.
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Because receivables and inventories tied up more capital, May & Baker leaned harder on short-term financing.
Similarly, Fidson Healthcare, another major drug maker, reported strong profits yet struggled with negative cash flow.
Together, these results show how Nigeria’s pharmaceutical firms chase growth while battling costly debt in a high-interest economy.
Looking ahead, May & Baker must convert sales into cash faster.
Otherwise, rising finance costs could erode its profits and turn its growth story into a warning.
