Fidson Healthcare sees significant 308% growth in PAT in FY 2014

Fidson Healthcare, a firm in the growing health sector industry, released its audited financial statements for the year ended December 31, 2014 on March 16, 2015.

The result posted revenue growth of 5.17 percent to N9.72 billion ($48.60m) from N9.24 billion ($46.2m) year-on-year (yoy), while profit after tax (PAT) grew by 307.68 percent to N631.82 million ($3.15m) from N154.98 million ($0.77m) yoy.

The company reported a 9 percent decline in distribution/admin and other expenses while other income grew by 83 percent.

“Our FY 2015 revenue forecast for Fidson Healthcare is N10.41 billion ($52.05m), representing a 7.01 percent growth relative to FY 2014, while our profit after tax estimate for FY 2015 is N695.02 million ($3.47m); a 10 percent increase from FY 2014,” GTI Securities Limited analysts said in a statement.

“This yields an improved EPS of N0.46 and a forward P/E of 9.68X, which signifies potentials for growth as evident in the strategic expansion of the company, considering that the industry average P/E (based on our research of peer companies) is about 19.35X.”

Fidson’s intentions to focus on extensive brand improvement, innovative and high quality products in key disease areas and local content building have been key drivers of financial performance and investors’ confidence, according to GTI.

The business is expected to benefit from management’s vision to grow sales and distribution channels and commitment to uniqueness of the products as a means to protect its originality.

“The shares of Fidson Healthcare plc currently trade at 15.77 percent premium to our fair value estimate of N2.89,” GTI said.