Business

Fidson Healthcare notches 256% profit growth in 2017 on WHO certifiable plant

Published

8 years ago

May 21, 2018

By Chioma Obinagwam

Indigenous Pharmaceutical industry giant, Fidson Healthcare Plc. has said that it recorded 256 per cent growth in Profit Before Tax (PBT) for full year(FY) ended December 2017.

Details of this impressive performance was released recently in its audited financial result submitted to the Nigerian Stock Exchange.

Fidson also reported an outstanding growth of 84 per cent in turnover from N7.6 billion in 2016 to N14 billion in 2017.

In like manner, the Cost of Sales increased by 91 per cent from N3.6 billion in 2016 to N6.9 billion in 2017.

The company’s PBT, which increased from N443 million in FY 2016 to 1.57 billion in FY 2017, ultimately saw the Earnings Per Share(EPS) increase over three-fold from 21 kobo to 71 kobo.

Following this impressive result, the company would be proposing dividend per share of 20k, a 400 per cent increase in over the previous year.

The significant competitive advantage of the company’s World Health Organization(WHO) Certifiable Plant is already evident after one full calendar year in operation.

Products from the new facility as well as volume increase from existing products were largely responsible for this remarkable growth.

The plant increased the company’s factory-based revenue by over 200 per cent in 2017—primarily due to an increase in production volumes and the introduction of new product lines.

A portion of its new products are medicines that cater for low income earners, with the quality consumers have come to expect from Fidson, assured.

Further extracts from the financial reports showed a 53 per cent increase in total overhead (administrative and selling & distribution expenses) from N3.1 billion in FY2016 to N4.7 billion in FY2017, which is due to an increase in the marketing and distribution expenses.

Finance cost also increased by 45% from N690m in 2016 to N1bn in 2017.

The increase in finance cost is mainly due to increased working capital to drive growth and a hike in interest rates from financial institutions.

Despite the rise in total cost, the company recorded a 127 per cent increase in operating profit which grew from N1.1 billion in 2016 to N2.5 billion in 2017.

The company is highly focused on extensive brand building as part of its long-term strategy and aims to expand its Intravenous fluid lines in order to meet demands.

Her new manufacturing facility which is compliant with, and on course to receive the WHO certification within 12 to 15 months—satisfying the African and global pharmaceuticals markets’ need for compliance and regulation, will drive this expansion.

This will broaden the company’s products base, stimulate financial growth and increase its capacity to ensure the healthcare demands of Nigerians are adequately met.

The maximisation of profitability, as well as growth opportunities, are paramount to Fidson Healthcare Plc.