By Daniels Ekugo
Indigenous Pharmaceutical industry giant, Fidson Healthcare Plc has reported a 256% growth in Profit Before Tax (PBT) for full year 2017. Details of this impressive performance was released recently in the audited financial result submitted to the Nigerian Stock Exchange. Fidson reported an outstanding growth of 84% in turnover from N7.6bn in 2016 to N14bn in 2017. In like manner, the Cost of Sales increased by 91% from N3.6bn in 2016 to N6.9bn in 2017. The company’s PBT, which increased from N443mn in FY2016 to 1.57bn in FY 2017, ultimately saw the Earnings Per Share increased over three-fold from N0.21k to N0.71k.
Following this impressive result, the company would be proposing dividend per share of 20k, a 400% increase in over the previous year.
The significant competitive advantage of the company’s World Health Organization 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% 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 to low income earners, with the quality consumers have come to expect from Fidson, assured.
The financial reports showed a 53% increase in total overhead (administrative and selling & distribution expenses) from N3.1bn in FY2016 to N4.7bn 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% increase in operating profit which grew from N1.1bn in 2016 to N2.5bn 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.