• Friday, June 21, 2024
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Fidson Healthcare’s financials in five charts

Here’s what to know as Fidson eyes N20bn capital raise

Fidson Healthcare reported N3.44 billion as profit from January to September, the highest in five years from N2.32 billion recorded in the corresponding period of 2021.

The firm reached a record-high revenue in five years, thanks to its sales of ethical goods which contributed 66.5 percent to the revenue of N31.43 billion in nine months of this year while over-the-counter(28.8%) and consumer healthcare products (4.5%).

Fidson’s revenue stood at N31.43 billion, up 44 percent from N21.8 billion in the period reviewed.

The firm’s 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.

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

Below is the analysis of Fidson Healthcare’s nine months’ financial books in five charts.

Profit margin

Fidson’s profit margin stood at 10.94 percent in the nine months of 2022, indicating an increase of 30 basis points from 10.64 percent in the nine months of 2021.

Profit margin is one of the commonly used profitability ratios to gauge the degree to which a company or a business activity makes money. It represents what percentage of sales has turned into profits.

Cost of sales ratio

Fidson’s cost of sales ratio was at 52.9 percent which implies the cost of sales during the period consumed 52.9 percent of the revenue generated by the firm. This is compared to 49.86 percent recorded in the nine months of last year.

The cost of sales ratio is a financial ratio that compares a company’s expenses generated by sales activity to its revenue. Most people use the cost of sales ratio as a percentage.

Gross margin

Fidson’s Healthcare recorded a gross margin of 46.10 percent in the nine months of 2022, indicating 404 basis points decline from 50.14 percent recorded in the corresponding period of 2021.

Gross margin is net sales less the cost of goods sold (COGS). In other words, it’s the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides.

OPEX Margin

Fidson’s operating expenses margin stood at 28.06 percent in the nine months of this year, a decline of 423 basis points from 32.29 percent in the nine months of 2021.

The operating margin measures how much profit a company makes on a dollar of sales after paying for variable costs of production, such as wages and raw materials, but before paying interest or tax. It is calculated by dividing a company’s operating income by its net sales.

The firm’s operating expenses rose to N8.82 billion in the nine months of 2022, a 25.3 percent increase from N7.04 billion in the nine months of 2021.

Cash flow from investing activities

Fidson Healthcare has recorded N2.25 billion negative cash flow for the period which ended in September 2022, this is coming from N2.57 billion negative cash flow in September 2021.

Cash flow from investing activities is a section of the cash flow statement that shows the cash generated or spent relating to investment activities. Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets.