Fidson posts 41% revenue growth amid rising operational costs

Fidson Healthcare Plc has sustained its growth momentum into Q1 2026, reporting a 41.4% year-on-year revenue increase to reach ₦119.1 billion.

The pharmaceutical giant’s ethical segment remained its strongest performer, accounting for over 65% of total sales.

The company’s Profit After Tax (PAT) grew by 61.1% reaching ₦9.3 billion, up from ₦5.8 billion in the corresponding period.

This earnings expansion was achieved despite significant macroeconomic headwinds, including a 39.8% rise in operating expenses (OPEX) and ongoing pressures from foreign exchange volatility.

Fidson maintained a robust gross margin of 41.3%, signaling efficient management of input costs.

However, analysts noted a tripling of trade receivables, suggesting a high-risk growth strategy involving extended credit to distributors.

Despite the debt levels, the company’s interest coverage ratio remains healthy at 4x, indicating that it is well-positioned to service its financial obligations while pursuing its regional expansion drive.