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Fidson Healthcare Grows Nine-Month Profit By 780.5% To N730.5m

More third quarter results poured onto the Nigerian Stock Exchange (NSE) on Tuesday, including drug manufacturing giant- Fidson Healthcare, which reported robust growth in revenue and profit, despite the equally significant increase in cost of sales in the nine-month ended September 30, 2017.
Sales revenue rose by N5.775bn or 127.57% to N10.302bn, from N4.527bn in the corresponding period of 2016, boosted by Over the counter (OTC) medications, which fetched N6.119bn, up from N2.785bn; while ethical drugs yielded N4.105bn, up from N1.663bn; just as consumer products dropped from N78.611m to N77.139m.
Cost of sales rose by N2.938bn or 137.22% from N2.141bn to N5.079bn, boosted also by the N2.958bn gulped by OTC, from N1.287bn; and N2.061bn by the ethical products, as against the previous N795.555m.
Other operating expenses dropped from N51.29m to N13.464m, most of which was corporate social responsibility cost, which decreased significantly from N20.899m to N10.288m.
Administrative expenses rose from N1.353bn in 2016 Q3, to N1.982bn, propelled by the rise in salaries from N363.049m to N664.424m; depreciation and amortization of N296.634m, as against the N166.852m recorded in prior third quarter; just as travelling expenses dropped from N302.142m to N127.461m; bad debt rose to N94.558m from N38.45m. Cost of diesel and fuel jumped to N275.322m from N85.45m; maintenance and repairs from N184.903m to N258.738m; and “others,” N246.656m, as against the N200.09m of 2016 third quarter.
Selling and distribution expenses increased significantly also from N409.104m to N1.595bn; driven by the rise in promotion and advertisement from N189.791m to N624.128m; sales expense of N741.262m from just N77.786m; while logistic expenses climbed to N22.78m from N141.527m. Operating profit therefore came to N1.646bn, a growth of N1.064bn or 183.04% from N581.565m.
Finance cost of N602.872m, as against N460.968m in the period under review was driven by the N623.94m interest charges on bank loan; less the N21.068m interest income on bank loans that amounted to N2.231bn, just like prior nine months from Access Bank (Central Bank of Nigeria intervention loan) of N134.655m; Bank of Industry totaling N1.057bn; Bond to investors, N984.656m; and Fidelity Bank (FPL) of N55.204m.
Profit before tax increased to N1.043bn from N120.698m; income tax expense jumped to N313.051m from N38.623m; and profit after tax to N739.453m, up from N82.075m in the previous nine-month period.

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