Fidson Healthcare shows resilience amidst 52% surge in input cost

Fidson Healthcare, in its unaudited financial books, recorded its highest half-year revenue and profit in five years despite a surge in input cost.

The pharmaceutical company recorded N20.4 billion as its revenue in half-year 2022, 58 percent increase from N12.9 billion in half-year 2021.

Fidson obtained most of its revenue from its sales of ethical goods N13.7 billion, followed by over-the-counter (N5.98 billion) and consumer healthcare products (N696.7 million).

The company’s cost of sales surge 52 percent to reach N10.5 billion, coming from N6.9 billion in June 2021.

In June 2022, Fidson recorded a profit of N2.7 billion, a massive 127 percent from N1.19 billion in the comparable period.

Fidson’s finance cost reached N797.3 million in June 2022, up 31 percent from N609.7 million in June 2021.

Finance income dropped 67 percent to N13.2 million in half-year 2022 from N39.8 million in half-year 2021.

Administrative expenses rose to N2.5 billion in June 2022, 9 percent from N2.3 billion in June 2021.

Fidson income tax provision increased to N1.3 billion, a massive 132 percent jump from N560 million in the comparable period.

Fidson health care increased its total asset to N44 billion in June 2022, a 33 percent jump from N33.1 billion in December 2021.

Personnel costs stood at N1.01 billion in June 2022, a 26 percent increase from N798 million in June 2021.

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

Selling and distribution expenses increased by 70 percent to N2.96 billion in half-year 2022 from N1.74 billion in half-year 2021.

Net cash flow from operating activities dropped 87 percent to N802.3 million in June 2022 from N6.15 billion in June 2021.

Fidson recorded negative cash utilized by investing activities at -2.32 billion from -N1.35 billion in June 2021.

Net cash from financing activities recorded N3.36 billion in June 2022 from negative N4.22 billion in June 2021.

Cash and cash equivalents at the end of the Period stood at N3.46 billion in June 2022, 15 percent from N3.01 billion in the same period last year.

At the firm’s 23rd Annual General Meeting, Segun Adebanji, Chairman, Fidson Board of Directors acknowledged the effects of the economic challenges such as the foreign exchange situation, rising operating costs, poor government funding of the health sector and the incessant closure of markets, especially in the South-eastern parts of Nigeria, which disrupted supply chain and regular supplies of pharmaceutical products around the country.

Adebanji stressed the resolve of the company’s leadership not to drop the ball.

“The board and management of our company remain determined to sustain our industry position as the pharma company of choice, not only in Nigeria, but also in the entire African continent. We will continue to champion innovation and capacity expansion to meet the strategic goals and priorities of our company to address our customers’ need for affordable and high-quality drugs,” he said.

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.