Fidson Healthcare records 310% profit growth

Fidson Healthcare Plc has released its audited results for the 2014 financial year on the floor of the Nigerian Stock Exchange, declaring significant growth in its profit for the year.

Specifically, the company grew its profit before tax by 249 per cent from N249.6m to N870.8m, while its profit after tax, which stood at N631.8m, was 308 per cent higher than the N154.9m it recorded in the previous year. The company’s earnings per share increased from N0.10 in 2013 to N0.42 in 2014.

This followed a five per cent year-on-year growth in the company’s revenue to N9.725bn from N9.247bn.

Furthermore, Fidson Healthcare grew its gross margin by seven per cent, from N5.1bn in 2013 to N5.4bn in 2014, while operating profit increased marginally by five per cent with operating margin remaining at 15 per cent of revenue.

Despite the economic challenges, harsh market conditions and increasing financing cost faced during the year, the company’s cash flow improved with its cash position increasing by 51 per cent from 2013.

The increase in long-term debt during the year is as a result of the issuance of a five-year fixed rate bond to refinance some expensive short-term debt and augment working capital requirements.

The result had helped to boost demand for the company’s stocks. On Tuesday, it rose by 4.74 per cent or 17 kobo to close at N3.76 per share, having risen by 9.10 per cent a day earlier.

The company’s Board of Directors has also proposed a dividend of 15 kobo per share for the 2014 financial year, reflecting a 50 per cent increase year on year.

It had paid a dividend of N150m, which translates into 10 kobo per share for the 2013 financial year.

Fidson healthcare said its focus on extensive brand building of its innovative and high quality products enhanced its financial growth and ability to maintain significant market share in key disease areas.

According to it, that is supported by robust sales and distribution channels as well as persistent diligence in ensuring products’ integrity through various anti-counterfeiting initiatives.

Meanhile, Fidson’s ultra-modern WHO Good Manufacturing Practice-compliant plant, where it planned to manufacture IV fluids in addition to existing product offerings is scheduled to be operational before the end of 2015, according to the company.

The plant is expected to broaden the company’s products base, increase its capacity and consequently profitability and growth opportunities.

SOURCE: Punchng

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