Indigenous pharmaceutical firm, Fidson Healthcare Plc has reported a 235 per cent growth in profit after tax (PAT) to N1.1 billion for the year ended December 31, 2017, from N317 million in 2016.
Details of the audited financial results showed that Fidson reported a revenue of N14.056 billion, up growth 84 per cent from N7.655 billion in 2016.
Similarly, cost of sales increased by 91 per cent from N3.6 billion in 2016 to N6.9 billion in 2017. There was an increase of a 53 per cent in total overhead (administrative and selling and distribution expenses) from N3.1 billion in 2016 to N4.7 billion in 2017, which is due to an increase in the marketing and distribution expenses. Finance cost also increased by 45 per cent from N690 million to N1 billion in 2017.
According to the company, 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 N1.1 billion in 2016 to N2.5 billion in 2017. Profit before tax (PBT), rose by 256 per cent from N443 million in 2016 to N1.57 billion in 2017, while PAT grew from N317 million to N1.1 billion. This growth led the company to close the year with an earnings per share 71 kobo, up from 21 kobo in 2016.
Following this impressive result, the company would be proposing dividend per share of 20 kobo which is 300 per cent higher than the five kobo paid the previous year.
According to the company, the significant competitive advantage of its World Health Organisation(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 to low income earners, with the quality consumers have come to expect from Fidson,” it said.
Fidson said it 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.