Fidson Increases Half Year Profit By 1,077%

Fidson Healthcare Plc unaudited half year financials for the period ended 30 June 2017, has revealed the company recorded a significant leap in its profit which grew by over a thousand percent.

The company’s half year 2017 result, released by the Nigerian Stock Exchange (NSE) Tuesday showed that revenue grew by 155.3 per cent year on year from N2.6billion to N6.6b as at June 2017.

Fidson’s revenue for the period was strengthened by improved Over the Counter (OTC) sales which grew by 189.5 percent to N4.2b from N1.5b in 2016 and a 121 percent increase in the Ethical segment which pooled N2.4b in sales as against N1.1b generated in June, 2016.

The significant growth in the OTC and ethical segments is the direct result of Fidson’s expanded manufacturing capacity which enabled the Company to meet growing demand for consumer healthcare products.

Profit before taxation stood at N685.4m from N58.2m in the immediate past year representing a growth of 1,077 per cent.

According to the result, Fidson’s profit for the period improved by the same mileage of 1,077 percent to settle at N466,068 compared to N39,582, recorded in June ,2016.

A breakdown of the income statement shows that cost of sales for the company grew to N3.2b in the first half of 2017, from N1.3 billion recorded in June 2016, indicating a 158.6 per cent rise.

Gross profit for the company rose to N3.4b against gross profit of N1.3b in the same period of prior year.

Total expenses recorded by the company in the review period stood at N2.4b from N978.1m in the prior period.

The result showed that Fidson’s Total assets improved slightly by 2 per cent to N16.97b from N16.67b in the same period of 2016.

The firm pruned Total liabilities to N9.986b from N10.1b, reflecting a 1 per cent decrease.

Shareholders’ fund during the period rose 6 percent to N6.984b from N6.593b as return on equity(ROE), a measure of the rate of return on stockholders’ investment in the enterprise improved to 6.67% from 0.6%

Net profit margin (NPM) for the company rose by 366 per cent points to 7 per cent from 1.5 per cent a year ago; and Return On Total Assets (ROTA) rose by 1,096 percentage points to 2.75 per cent, from 0.23 per cent in the same period of 2016.

The significant increase in ROTA gives credence to the fact that the company has gained immensely from its capacity expansion.