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12 takeaways from Fidson latest financial results

12 takeaways from Fidson latest financial results

Access to foreign exchange is one of the biggest issues in the pharmaceutical manufacturing industry.

This is because the industry in Nigeria imports more than 90 percent of its inputs. Other concerns include infrastructure and the rise in diesel prices, which, unfortunately, factories have to rely on due to the limited electricity supply from DisCos, which is insufficient to run a business continuously, and manufacturers require consistent power.

These difficulties are causing the average Nigerian customer to pay more for even locally manufactured drugs. Regardless, some pharmaceutical manufacturing businesses have managed to stay afloat and are steadily increasing their profits. Fidson Healthcare plc is one of these pharmaceutical companies.

Fidson recorded a 24.5 percent surge in revenue to N11.05 billion in the third quarter of 2022, this is coming from N8.87 billion recorded in the third quarter of the previous year.

The healthcare firm saw its profit drop by 35 percent to N736.4 million in the third quarter of this year from N1.13 billion in the corresponding period of last year.

Fidson’s cost of sales stood at N6.42 billion in the third quarter of this year, which indicates 58 percent of the total revenue obtained in the period between July till September.

Fidson’s earnings per share stood at N32 in the third quarter of this year, coming from N54 in the same period of last year.

Here are the seven things to note about Fidson’s third quarter

Revenue – 24.5% y/y increase

Fidson saw its revenue at N11.05 billion in the third quarter of this year, indicating a 24.5 percent increase from N8.87 billion reported in the third quarter of 2021.

The cost of sales – surged 66%

The healthcare firm’s cost of sales surges to N6.42 billion in the period between July till September from N3.87 in the same period of 2021, indicating a 66 percent increase year on year.

Profit – 35% dip

Fidson recorded a 35 percent dip in profit to N736.4 million in the third quarter of this year from N1.13 billion in the third quarter of 2021.

Gross profit – down 7.6%

The healthcare firm’s gross profit was down by 7.6 percent to N4.62 billion from N5 billion in the same period of 2021.

Finance income – up 16%

Fidson’s finance income stood at N21.06 million in the third quarter of 2022, up 16 percent from N18.14 million in the corresponding period of 2021.

read also: Fitch predicts slow economic growth for Nigeria in 2023

Other operating income – recovery from a loss

Fidson’s other operating income stood at N272.5 million in the third quarter of this year from a loss of N69.16 million in the corresponding period of 2021.

Finance cost -54% surge

The healthcare firm saw its finance cost surge 54 percent to N488.7 million in the third quarter of 2022 from N317.6 million in the third quarter of 2021.

Administrative expenses

Fidson’s administrative expenses increased to N2.74 billion in the third quarter of this year, up 28.6 percent from N2.13 billion in the third quarter of last year.

Selling and distribution expenses – down 28%

The healthcare firm recorded N600.8 million as its selling and distribution expenses which were 28 percent down from N832.5 million

Income tax provision

The income tax stood at N354.5 million in the third quarter of 2022, down 33.6 percent from N534 million in the third quarter of last year.

Cash flows from operating, investing, and financing activities

Net cash flow from operating activities dropped 55.4 percent to N3.43 billion from N7.7 billion, indicating a positive cash flow year on year.

Net cash utilised by investing activities recorded a negative of N2.25 billion from a negative of N2.57 billion in the period reviewed.

Net cash from financing activities recorded a positive of N1.72 billion from a negative cash flow of N5.7 billion in September 2021.

Cash and cash equivalents

Cash and cash equivalents at the end of the period increased to N2.8 billion in September 2022, up 239 percent from N825.7 million in September 2021.