Fidson Healthcare plc, a Nigerian drug maker, is currently in a growth phase as earnings surge on aggressive expansion, improved and innovative products, and health awareness among the citizenry.
Data compiled by BusinessDay show that the drug maker recorded double-digit growth at the bottom- line level to end 2014 financial year as profit after tax surged by 308 percent to N631.82 million, from N154.98 million in 2013. Sales increased by 5 percent to N9.72 billion.
Earnings per share (EPS) jumped by 221 percent to 42k in 2014 from 13k in 2013.
Drug makers have been using innovative products to tap into the country’s growing population as the rise in non-communicable diseases (NCDs) such as diabetes, hypertension and cancer for some time now is leading to an increase in healthcare spending by Nigerians.
Fidson is increasing investment in plant capacity and research (which is leading to new product offering) and has been positive for the company at least from the perspective of revenue growth.
Despite the amount spent on capital projects such as aggressive expansion and upgrading of plant facilities to meet the pressing demand of the consumers, the company was able to control costs.
The company’s operating expenses were down by 9 percent to N4.09 billion in 2014 from N4.50 billion in 2013, while operating expenses ratio, a measure of efficiency, reduced to 42.07 percent as against 48.07 percent in 2013.
It means the company is reducing costs while generating higher sales.
Cost of sales increased by 4 percent to N4.28 billion in the review period as against N4.13 billion in 2013, while cost of sales ratio remained flattish at 44 percent.
Nigeria’s leading pharmaceutical company is set to transform the country’s pharmaceutical manufacturing industry with the construction of its new World Health Organisation (WHO)-standard biotech plant, located in Sango Ota, Ogun State.
“With the new plant in place, Fidson Healthcare will accomplish a world-class pharmaceutical manufacturing capacity, which will compete healthily with its foreign counterparts, thereby placing the country’s healthcare manufacturing sector on a global pedestal,” said Fidelis Ayebae, the company’s managing director.
“Therefore, it is imperative that a more massive manufacturing plant than the existing one is put in place to take care of the rapidly growing demand of the market,” said Ayebae
The biotech plant is expected to rake in as much N4 billion in profit in the third quarter of 2015 from its new product pipeline as the company joins the nation’s intravenous infusion market.
Fidson’s total assets were up by 28.13 percent to N15.76 billion in 2014 from N12.30 billion in 2013, while total shareholders’ fund increased to 10 percent – N5.76 billion.
Return on average equity (ROAe) was 11.47 percent in the review period, while the return on average assets (ROAA) stood at 5.50 percent. The company’s share price closed at N5.90 on the floor of the exchange, while market capitalisation was N5.71 billion.
BALA AUGIE
