Despite 92% Sales Cost Growth, Fidson Healthcare Nets N1bn Profit In 2017

It was indeed a robust year for pharmaceutical giant- Fidson Healthcare Plc, as it grew 2017 revenue by a robust 83.64%, even as profit before and after tax were even better at 255.7% and 234.89% respectively. This was despite the 91.75% rise in cost of sales from N3.599bn in 2016 to N6.902bn, following which the board has offered a 20 kobo, up from five kobo dividends, from Earnings Per Share of 71 kobo as against the previous 21 kobo to shareholders whose names appear on the list of members. The proposed dividend amounted to N300m, as against the N75m distributed in the corresponding period of 2016.
Fidson Healthcare earned N14.057bn from sales, representing 83.64% rise from the N7.655bn reported in 2016, a breakdown of which showed that over-the -counter products fetched the bulk of revenue, amounting to N7.246bn, as against prior year’s N4.575bn. Revenue from sale of ethical products however recorded the biggest growth from N2.99bn to N6.705bn, representing a 47.7% of total revenue, from 39.066% in 2016; while consumer products earned a total of N104.715m, up from N89.027m.
Cost of sales stood at N6.902bn from N3.599bn, buoyed by the N2.87bn for ethical drugs and N2.879bn cost for over-the-count, from N1.366bn and N2.137bn respectively. The company also provided N441.021m depreciation of factory; N307.547, for energy; N229.707m other factory overheads; and N104.007m as personnel cost; all of which did not exist in prior year.
Administrative expenses rose slightly by 12.6% to N2.36bn from N2.096bn; helped by the N604.201m personnel costs, which rose from N541.523m in 2016 to N604.201m; followed by the N368.49m for repairs and maintenance expenses, up from N286.631m; while travelling expenses dropped to N254.495m from N368.256m.
Other operating income dropped to N103.15m from N105.11m; selling and distribution expenses rose 341.23% to N2.348bn from N973.57m.
Finance cost climbed 45% up to N1.00bn from N690.78m, comprising interest on bank loans that rose to N617.927m, from N315.587m; interest on bond dropped to N230.32m from N248.424m; while interest on finance lease increased from N126.765m from N153.403m. Finance income dropped 29.78% to N31.07m from N44.25m, with interest earned on other non-current financial asset, which dropped from N30.945m to N25.729m.
Profit before tax rose from N443.79m to N1.578bn, while after tax profit climbed to N1.06bn from N316.76m.