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Fidson Healthcare grows profit by 156 percent to N3.08 billion in 2021

Fidson Healthcare grows profit by 156 percent to N3.08 billion in 2021

Fidson Healthcare Plc has posted a significant 156 percent increase in profit as demand for prescription drugs continues to rise amid COVID-19 pandemic, an analysis by BusinessDay has revealed.

According to its latest financial statement, Fidson showed efficiency growth in its revenue to N30.74 billion, a 68 percent increase from N18.28 billion in the previous year.

The company cost of sales increased by 62 percent to N15.75 billion, compared to N9.70 billion in the previous year which implies rising prices for supplies.

Further analysis by BusinessDay shows Fidson soared its administrative expenses to N6.42 billion from N3.73 billion. Administrative expenses are expenses an organisation incurs that are not directly tied to a specific core function such as manufacturing, production, or sales.

Selling and distribution expenses increased to N3.42 billion in December 2021 compared to N2.1 billion in December 2020.

Finance income surged to N77.7 million compared to N9.24 million which implies the company received interest on outstanding monies and upward adjustments to the fair value of a provision, financial liability or financial asset, gain on derivatives, net foreign exchange gain and interest income on lease receivables.

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Finance costs reduced by 5 percent to N1.26 billion in December 2021, from N1.33 billion in December 2020.

Fidson’s total assets grew by 23 percent to N33.46 billion compared to N27.24 billion in the period under review.

Personnel costs increased to N2.03 billion in December 2021 compared to N1.53 billion in December 2020.

“Fidson sees a strong case for expanding into API production to increase the availability of pharmaceuticals and close the gaps caused by supply chain disruption, especially due to the COVID-19 pandemic, across Western Africa and the African continent at large,” Fidelis Ayebae, chief executive officer (CEO), Fidson Healthcare Plc said at an industry event last December.

Prepayments jumped to N819.06 million compared to N296.31 million in the previous year which showed the company’s advances made to suppliers for the purchase of factory raw and packaging materials advert, prepaid insurance and prepaid rent.

Loans and receivables increased to N277.3 million in 2021 from N12.87 million in 2020, showing the company’s investment towards gratuity payment.

The company’s net cash utilised by investing activities which is one of the sections on the cash flow statement that reports how much cash has been generated or spent from various investment-related activities in a specific period, recorded N3.09 billion from N1.81 billion year on year loss.

Also, Net cash utilised by financing activities, a section of a company’s cash flow statement, which shows the net flows of cash that are used to fund the company recorded a loss of N4.28 billion in 2021 compared to N2.45 billion in 2020.

Fidson Healthcare Plc is a pharmaceutical manufacturing company in Nigeria, founded in 1995 which has built and cultured an organisational framework that has steadily helped gain ascendancy in the industry.