Fidson healthcare: Impressive performance across all financial parameters
By Philemon Adedeji
Fidson healthcare plc, in its half year (H1) unaudited financial results ended June 30, 2022 reported strong performance across all the parameters most specifically Profit Before Tax (PBT) that increased stronger.
The profitability ratios for the period emerged stronger over the preceding year’s as profit margin increased, as well as return on assets.
Fidson healthcare in its unaudited results released showed an improvement over that of the preceding year as revenue for the H1 2022 stood at N20.4 billion, a 57.6 per cent higher than the N12.92 billion recorded in the preceding year. The 57.6 per cent growth rate in revenue means the group recorded better sales during the period despite numerous challenges facing the sector.
The company’s Profit After Tax stood at N2.703 billion in H1 2022 in contrast to N1.190 billion recorded during the half year corresponding period of 2021, representing 127.2 per cent increase.
Its unaudited results announced on the floor of the Nigerian Exchange Limited (NGX), showed Profit Before Tax that grew significantly to N4.005 billion in H1 2022 compared with N1.750 billion recorded in H1 2021, reflecting an improvement of 128.8 per cent.
The group unaudited results revealed cost of sales which increased to N10.52 billion in H1 2022 from N6.96 billion achieved in H1 2021, reflecting an improvement of 51.1 per cent.
The cost of sales caused gross profit to gained 65.2 per cent to N9.863 in six months of 2022 from N5.969 billion in six months of 2021. As administrative expenses rose by 8.1 per cent to N2.525 billion in six months of 2022 from N2.336 in six months of 2021
During the period, the rate at which the group sell and distribute increased by 69.9 per cent to N2.961 billion in H1 2022 from N1.743 billion in H1 2021
From the analysis, Operating profit deployed by the group stood at the sum of N4.79 billion in H1 2022 compared to N2.32 billion generated in H1 2021, this result revealed a significant increase to a 106.4 per cent.
Earnings per share recorded by the group during the period under review grew significantly to 130 kobo in H1 2022 compared to 57 kobo shared in H1 2021, the growth reflects a marginal difference of 128.1 per cent.
Balance Sheet on Impressive Position
In the unaudited results, Fidson healthcare recorded stronger total assets as growth total liabilities and current total assets improved further.
The group total assets gained 33.2 per cent to N44.08 billion in H1 2022 from N33.1 billion achieved in full year 2021 results and account for the period ended December 31, 2021. As total non-current assets gained 19.3 per cent to N17.8 billion in H1 2022 from N14.9 billion in full year 2021, while total current assets increased by 33.2 per cent to N14.6 billion in H1 2022 from N11.15 billion in full year ended December 31, 2021.
In addition, the total liabilities increased by 42.7 per cent to N27.6 billion in H1 2022 from N19.4 billion reported in full year 2021. As total current liabilities gained 29.8 per cent in H1 2021 to N10.8 billion from N8.381 billion as at the end of December 2021, while non-current liabilities rose by 19.7 per cent to N16.5 billion in H1 2022 from N13.7 billion recorded as at the end of December 2021
Profitability Ratio
From the analysis, Fidson healthcare recorded profitability the 2022 half year. However, while comparing with prior-year results, all the parameters are seen on impressive performance.
The group profit margin is appreciated by 19.7 per cent in H1 2022 from 13.5 per cent in H1 2021, this indicated that for every N100 earned by the group in the course of the year N19.70 if it can be translated to profit More than N13.50 of the corresponding year.
Return on Assets (ROA), also increased to 9.1 per cent from 5.3 per cent in 2021 It means every N100 worth of assets deployed contributed N9.10 to the Profit Before Tax higher than the N5.30 in 2021
In his statement, the Chairman, Board of Directors of the company Mr. Segun Adebanji, FCA, said Fidson continued to champion innovation and capacity expansion to address customers’ need for affordable and high-quality drugs despite the unfriendly socio-economic realities in Nigeria. Though he acknowledged the effect of the economic challenges such as the foreign exchange situation, rising operating costs, poor government funding of the health sector, and the incessant closure of markets, especially in the South-eastern part of Nigeria which disrupted the supply chain and regular supplies of our products around the country; he stressed the resolve of the company’s leadership not to drop the ball.
“The Board and Management of our company remain determined to sustain our industry position as the pharma company of choice, not only in Nigeria but also in the entire African continent. We will continue to champion innovation and capacity expansion to meet the strategic goals and priorities of our company to address our customers’ need for affordable and high-quality drugs,” Adebanji said.
The highlight of the event was the interactive session where Shareholders expressed their satisfaction with the performance of the company. They thanked the management of Fidson Healthcare PLC., under the leadership of the Managing Director, Dr. Fidelis Ayebae for their proactive leadership even in the daunting economic conditions.
Despite the macro-economic conditions and the operating environment, Fidson Healthcare, driven by its investments in local manufacturing, will continuously pursue its vision to be the healthcare provider of choice in Africa. A young, vibrant, and well-motivated management team is already boosting investors’ confidence that the future of the company remains bright.
The company is committed to meeting the demand for pharmaceutical products across Nigeria with a deliberate increase in production capacity to deliver dosage forms in key therapeutic areas. Today, the company boasts of over 250 NAFDAC registered brands and is deliberately expanding production capacity at its current World Health Organisation Good Manufacturing Practice (WHO-CGMP) compliant facility in Sango Ota, Nigeria – the largest pharmaceutical manufacturing facility in Sub-Saharan Africa.
