Fidson Healthcare Plc grew its profit after tax by 22 per cent in the nine-month period ended September 30, 2014, the company’s results for the period showed.
Specifically, the results showed that the company’s profit after tax rose from N381.5m in nine months to September 30, 2013 to N466.4m in the period under review.
Also, the company’s profit before tax was up by 26 per cent year-on-year, while its turnover increased by four per cent year-on-year to N7.510bn, an increase of 54 per cent quarter-on-quarter.
According to the company, the gross profit margin also rose by 6.0 per cent year-on-year to N4.1bn, largely as a result of an improvement in the cost of sales, which is currently at 45.1 per cent, compared to 46.7 per cent as of half-year 2014.
Fidson Healthcare explained that although financial charges increased by 70 per cent to N315m as against the N185m recorded in the corresponding period of last year, the company’s PBT and PAT margins increased from 7.5 per cent to 9.1 per cent and 5.3 per cent to 6.2 per cent respectively; compared with the same period last year giving an annualised EPS of 41 kobo.
According to the company, its financial growth trend is premised on its ability to maintain its products’ market share in key therapeutic areas.
“This is driven by innovative products, strategic marketing approaches, robust distribution channels as well as relentless efforts in ensuring quality and various anti-counterfeiting initiatives,” it said.
It added that it was well-positioned for huge growth opportunities, following the projection of a significant improvement in sales upon the completion of its new World Health Organisation Good Manufacturing Practice-compliant plant. The plant is expected to begin operation in 2015.
At the company’s Annual General Meeting in July, where the shareholders approved the payment of N150m dividend for the year ended December 31, 2013, its Chairman, Mr. Felix Ohiwerei, had given the assurance that the company would work to reduce cost and quickly complete the biotech plant.
Ohiwerei, who noted that the company had be consistent in its dividend pay-out, said at the time, “Given the way that the company has performed, if there are no hiccups we hope to do better. The company is in the process of seeking cheaper sources of funds, which would be helpful as the company is building a Biotech plant.”
Reviewing the performance of the company for the year ended December 31, Ohiwerei had informed the shareholders that the turnover rose by 29 per cent from N7.2bn to N9.2bn. Gross profit grew from N4bn to N5bn, representing an increase of 26 per cent.
He had added that the company’s operating profit for full-year 2013 increased from N854m in 2012 to N1.3bn due to increases in turnover and better management of operational costs. Agency report
