Fidson healthcare, a Nigerian drug maker, has reported a 98 percent surge in profits to N1.15 billion in the first three month of 2021 compared to N579.6 million recorded in the corresponding period last year.
The healthcare company saw its revenue jump 61 percent to N10.24 billion in March 2022 as against N6.35 billion in March 2021.
The increase in revenue was obtained from sales of goods – ethical, over-the-counter, consumer healthcare products which stood at N6.96 billion(68%), N3.07 billion(30%) and N213.3 million(2%) respectively.
Revenue from Ethical products stood at N6.96 billion in March 2022, a 76 percent increase coming from N3.95 billion in March 2021.
The company’s over-the-counter product stood at N3.07 billion in March 2022, a 30 percent increase from N2.36 billion in March 2021.
Fidson consumer healthcare products surged to N213.3 million from N33.2 million in the previous year.
The total cost of sales climbed 66.6 percent to N5.78 billion in March 2022, coming from N3.47 billion in March 2021.
Administrative expenses grew to reach N1.16 billion from N919.3 million in the comparable periods.
Selling and distribution expenses increased to N1.43 billion in March 2022 from N860 million in the same period last year.
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Finance income rose to N12.8 million in the first three month of 2022 as against N3 million in the previous year.
Finance costs climbed 14 percent to N369.6 million from N323.8 million in the period under review.
The healthcare company saw its personnel cost surge 27 percent to N165.3 million as against N129.8 million.
Net cash flow from operating activities dropped to a loss of N738.2 million from a gain of N5.20 billion.
Net cash utilized by financing activities increased to N1.94 billion as against N2.34 billion loss.
Cash and cash equivalents at the end of March dropped to N1.96 billion from N3.11 billion in the previous year.
Other operating income stood at N190.3 million in March 2022, coming from N77.28 million.
The impressive results come amid a tough unpredictable macroeconomic environment that deals a great blow on companies’ margins, and more worrisome is that firms may not find it easy passing on higher costs to consumers in the form of higher prices because consumers are being chucked by huge utility bills and inflationary pressures.
Analysts are optimistic that the drugmaker will continue with the strong earnings growth momentum in the remaining quarters in 2022 as it has a lot of projects in the pipeline. They expect these projects to add impetus to revenue and boost investor appetite for the stock.
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. Fidson Healthcare Limited also produces a range of nutraceuticals (health) products.
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