By Goddy Egene
The board of directors of Fidson Healthcare Plc has recommended a dividend of 15 kobo per 50 kobo share for the year ended December 31, 2019.
The healthcare firm recovered from a loss in 2018 to a profit after tax (PAT) of N312 million for the year ended December 31, 2019. The company posted a revenue of N14.062 billion in 2019, compared with N16.229 billion in 2018.
Cost of sale was reduced from N9.910 billion to N8.195 billion, while administrative expenses fell from N2.614 billion to N2.580 billion. Similarly, selling and distribution expenses were reduced from N1.905 billion to N1.446 billion, making the company to end with an operating profit of N2.118 billion, up from N2.048 billion.
A 10 per cent decline in cost of finance from N1.925 billion to N1.716 billion, enhanced its bottom-line as the company recorded PAT of N312 million in 2019, compared with a loss of N97.44 million in 2018.
According to analysts, the company’s performance reflected the impact of the equity injection the company witnessed towards the end of last year that helped to reduce the financing cost.
Fidson Healthcare Plc last year successfully raised N2.345 billion equity capital from existing shareholders to boost its operations.
The Chairman of the company, Mr. Segun Adebanji told shareholders that the capital raise was towards refinancing expensive debt and working capital funding in a bid to improve its margins.
According to him, cost optimisation alongside market penetration strategy were a few of many initiatives to sustain growth and return value to shareholders that the company is currently pursuing.
Adebanji noted that Fidson continued to strengthen its operating facilities with expansion and retooling.
‘’Old machines and equipment have been disused and replaced with modern ones. We are currently expanding our capacity utilization through increased production and contract manufacturing for other notable companies in the industry,’’ he said.
He also said the company was poised to reposition the business through business realignment and useful industry collaboration in order to take advantage of the growth opportunities in the market, stressing that “We are currently expanding our capacity utilization through increased production and contract manufacturing for other notable companies in the industry.”
He said company continued to leverage its World Health Organisation (WHO)-certifiable factory, having recently executed a partnership with Glaxosmithkline Consumer(GSK) Plc that would see Fidson manufacture for GSK’s West African operations going forward.