Fidson Healthcare Plc has recorded a 256% growth in Profit Before Tax (PBT) for full year 2017.
The company’s audited financial result submitted to the Nigerian Stock Exchange,NSE showed an outstanding growth of 84% in turnover to N14 billion in 2017 from N7.6 billion in 2016.
In like manner, the Cost of Sales increased by 91% to 6.9 billion in 2017 from N3.6billion in 2016.
The company’s PBT, which increased to N1.57billion in 2017 from N443 million in 2016 ultimately saw the Earnings Per Share, EPS increased over three-fold to N0.71k from N0.21k in 2016. Following this impressive result, the company would be proposing dividend per share of 20k, a 400% increase in over the previous year.
According to a statement from the company:”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) to N4.7billion in 2017 from N3.1 billion in 2016,which is due to an increase in the marketing and distribution expenses.
Finance cost also increased by 45% to N1billion in 2017 from N69 million in 2016. 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 to N2.5billion in 2017 from N1.1 billion in 2016. 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.