Nigerian drug makers listed on the Nigerian Exchange Group have recorded an 18 percent decline in distribution cost in the first half of 2023, BusinessDay analysis shows.
Fidson Healthcare, GlaxoSmithKline, May & Baker, Neimeth, and Morison Industries recorded a cumulative distribution cost of N5.2 billion in H1 2023 from N6.33 billion in the same period of 2022.
Distribution cost is the total of all those expenses that the producer of a product incurs to make the delivery of the product from its location to the end customer’s location possible.
Firm analysis
Fidson Healthcare
Fidson Healthcare recorded the highest selling and distribution expenses of N2.31 billion in H1 2023 from N2.96 billion in the same period of 2022.
The firm’s administrative expenses increased to N4.05 billion in H1 2023 from N2.53 billion in the similar period of 2022.
Revenue grew to N25.58 billion from N20.38 billion while profit after tax stood at N2.77 billion from N2.7 billion. Fidson Healthcare Limited manufactures and sells pharmaceutical and nutraceutical products in Nigeria including over-the-counter, ethical, and consumer products. The company produces various drug classes for antacid and ulcer care, anti-diabetic, anti-malaria, anti-diarrhea, anti-psychotic as well as osteo-care, pain relief, colds and flu, thrombo-prophylactics, and cardio-vascular products.
Read also: Inside details on drug makers’ efficient use of funds in Q1 2022
GlaxoSmithKline
GlaxoSmithKline’s selling and distribution costs amounted to N1.43 billion in H1 2023 from N2.17 billion in the same period of 2022.
The firm’s administrative expenses surged to N1.07 billion in H1 2023 from N1.01 billion in the same period of 2022.
Revenue declined to N7.75 billion from N14.81 billion while profit also dipped to N339.72 million from N349.35 million.
GlaxoSmithKline Consumer Nigeria Plc manufactures and markets a range of consumer healthcare and pharmaceutical products in Nigeria. Its product portfolio includes treatments for asthma, HIV/AIDS, malaria, depression, migraines, diabetes, heart failure, digestive ailments, and cancer.
The firm’s consumer healthcare products include oral healthcare products; wellness products for the management of pain, gastrointestinal and respiratory conditions; multivitamins; and a range of nutritional healthcare beverages.
May & Baker
May & Baker’s distribution, sales, and marketing expenses grew N1 billion in H1 2023 from N887.87 million in the same period of 2022.
The firm’s administrative expenses surged to N717.69 million in H1 2023 from N554.32 million in the same period of 2022.
Revenue surged to N8.78 billion in H1 2023 from N6.77 billion while profit after tax increased to N684.06 million from N492.34 million.
May & Baker Nigeria is a Nigeria-based pharmaceutical company involved in the manufacturing, selling, and distribution of human pharmaceuticals, human vaccines, and consumer products.
The healthcare firm operates through two segments: Pharmaceuticals and Beverage. The pharmaceuticals segment is involved in the production and sale of human pharmaceuticals while the beverage segment is involved in the production of bottled water.
Read also: Drug makers shine as revenue rises by 37% in q1
Neimeth
Neimeth’s marketing and distribution expenses surged to N453.62 million in H1 2023 from N286.98 million in the similar period of 2022.
The firm’s administrative expenses rose to N290.51 million in H1 2023 from N255.61 million in the same period of 2022.
Turnover for the period declined to N957.4 million from N1.63 billion while the firm recorded a loss of N452.56 million from a profit of N175.46 million.
Neimeth International Pharmaceuticals is a publicly listed pharmaceutical company founded in 1997 and headquartered in Lagos. It was established by a former managing director of Pfizer Products of Nigeria to acquire some of the trading assets of Pfizer International in Nigeria.
Morison Industries
Morison Industries’ distribution expenses declined to N11.16 million in H1 2023 from N15.74 million in the same period of 2022.
Revenue increased to N56.29 million from N86.95 million while loss for the year stood at N44.61 million from a loss of N45.51 million.
Morison Industries Plc manufactures and markets a range of pharmaceutical and hygiene products in Nigeria as well as imports and distributes medical, surgical, and hospital consumables. The company is a leader in the field of wound care solutions, trauma/arthroplasty, and bone graft products in Nigeria.
