Fidson Healthcare Plc. released its audited 2015 financial results to the Nigerian Stock Exchange this week, recording an 18% growth in profit after tax from N631mn in 2014 to N744mn in 2015.
This performance is in spite of a 16% decline in turnover to N8.21bn, which was a result of the challenges to sales and distribution faced during the first half of 2015 largely due to the general elections.
The upturn in sales witnessed in the second half of the year was curtailed by the paucity of foreign exchange for the importation of products and essential raw materials, which severely affected product availability.
The financial results also showed an increase of 6% in operating profit from N1.45bn last year to N1.52bn. According to management, the increase is largely as a result of the company’s cost optimization strategy and a reduction in selling and distribution expenses. The company’s cost improvement trend, which it embarked on a couple of years ago, is in line with its strategy to drive efficiency in the face of a challenging business environment.
There was a 29% increase in finance cost, mainly due to the N2bn fixed-rate Bond issued in November 2014, from N554mn to N715mn. This impacted on Fidson’s profit before tax, which marginally dipped from N870mn last year to N838mn – a decline of 4%.
The company continues its focus on extensive brand building as part of its long-term strategy and will be introducing a number of new products into the Nigerian market. This is a direct result of the move to the company’s new World Health Organisation Good Manufacturing Practice (WHO-GMP), where local production is being ramped up.
A new product line – Intravenous fluids – to be added to five existing product lines at the new factory will enable Fidson consolidate its manufacturing base in the near future.