Fidson, one of Nigeria’s biggest drugmakers has grown its profit after tax by 18 percent despite finance cost pressures in the first quarter of 2023.
The healthcare firm grew its profit after tax to N1.36 billion in the first quarter of 2023 from N1.15 billion in the first quarter of 2022.
Fidson’s finance cost grew 28 percent to N472.73 million in the first quarter of 2023 from N369.57 million in the first quarter of 2022.
Fidson’s finance cost increase was driven by 159 percent growth in interest on finance leases to N17.44 million and a 25 percent growth in interest on bank loans to N455.29 million in the first quarter of 2023.
In comparison with peers, May and Baker’s finance cost dropped 0.2 percent to N78.36 million in the first quarter of 2023 from N78.54 million in the first quarter of 2022.
However, Neimeth’s finance cost increased by 154 percent to N55.31 million in the first quarter of 2023 from N21.81 million in the first quarter of 2022.
Fidson’s revenue increased by 11.3 percent to N11.4 billion in the first quarter of 2023 from N10.24 billion in the first quarter of 2022.
The firm’s revenue from ethical goods stood at N6.81 billion, over-the-counter goods’ revenue stood at N3.7 billion, and sales of consumer healthcare products at N888.1 million.
Fidson’s cost of sales increased to N6.52 billion, 13 percent increase from N5.78 billion in the period reviewed.
Fidson incurred N3.14 billion cost on ethical goods, over-the-counter cost stood at N1.72 billion while consumer healthcare product’s cost of sales stood at N666.08 million.
Furthermore, personnel cost stood at N329.08 million, energy cost stood at N29.66 million, depreciation of factory PPE stood at N193.14 million and other factory overheads cost stood at N187.33 million.
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Other operating income grew 17.8 percent to N224.17 million in the first quarter of 2023 from N190.31 million in the first quarter of 2022.
Fidson’s administrative expenses increased to N1.32 billion, 14 percent growth from N1.16 billion in the comparable periods.
Selling and distribution expenses stood at N1.3 billion in the first quarter of 2023, 9 percent drop from N1.43 billion in the first quarter of 2022.
Fidson’s selling and distribution expenses comprise of sales which stood at N799.12 million, logistics at N253.52 million, promotion and advertisement at N251.06 million.
The firm’s total current assets grew 6 percent to N24.08 percent in March 2023 from N22.82 billion in December 2022.
Cash and cash equivalents at the end of the period grew marginally by 1 percent to N1.98 billion in March 2023 from N1.96 billion in March 2022.
The movement in the cash and cash equivalents revealed net cash flow from operating activities stood at a positive of N292.30 million from N738.3 million negative cash flow.
The firm’s net cash utilised by investing activities stood at a positive of N897.17 million from N919.44 million negative cash flow in the reviewed period.
Net cash from financing activities stood at a negative of N1.14 billion in the first quarter of 2023 from N1.94 billion in the first quarter of 2022.
Fidson’s earnings per share stood at 59 kobo per share from 55 kobo per share in the comparable period.
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