Indigenous pharmaceutical firm, Fidson Healthcare Plc has reported a 235 per centÂ Â growth in profit after taxÂ Â Â Â (PAT) to N1.1 billion forÂ Â the year ended December 31, 2017, from N317 million in 2016.
Â Details of the audited financial results showed thatÂ Â Fidson reported a revenue ofÂ N14.056Â Â billion, up growth 84 per cent from N7.655 billion in 2016.
Similarly,Â Â Â cost of sales increased by 91 per centÂ Â from N3.6 billion in 2016 to N6.9 billion inÂ Â 2017. There was an increase ofÂ Â aÂ Â 53 per cent in total overhead (administrative and selling and distribution expenses) from N3.1 billion inÂ Â 2016 to N4.7 billionÂ Â in 2017, which is due to an increase in the marketing and distribution expenses.Â Â Finance cost also increased by 45 per centÂ Â from N690 millionÂ Â Â to N1 billion in 2017.
According to the company, the increase in finance cost is mainly due to increased working capital to drive growth and a hike in interest rates from financial institutions.
Despite the rise in total cost, the company recorded a 127Â Â increase in operating profit which grew from N1.1 billionÂ Â in 2016 to N2.5 billion in 2017.Â Profit before taxÂ (PBT), rose by 256 per centÂ Â Â from N443 million in 2016 to N1.57 billion in 2017, while PAT grew from N317 million to N1.1 billion.Â Â This growth ledÂ the company to close the year with anÂ Â earnings per share 71 kobo, up from 21 kobo in 2016.
Following this impressive result, the company would be proposing dividend per share of 20 kobo which is 300 per cent higher than the five kobo paid the previous year.
According to the company, the significant competitive advantage of itsÂ Â World Health Organisation(WHO) certifiable plant is already evident after one full calendar year in operation.
â€œProducts from the new facility as well as volume increase from existing products were largely responsible for this remarkable growth. The plant increased the companyâ€™s factory-based revenue by over 200 per cent in 2017, primarily due to an increase in production volumes and the introduction of new product lines. A portion of its new products are medicines that cater to low income earners, with the quality consumers have come to expect from Fidson,â€ it said.
Fidson said it isÂ Â Â highly focused on extensive brand building as part of its long-term strategy and aims to expand its Intravenous fluid lines in order to meet demands.