Fidson Healthcare PLC announced a profit before an annual tax of 7.5 billion Nairas in its recent non -audited financial report, published on the Nigerian Exchange (NGX) on January 30, 2025.
This represents an increase of 27.31% compared to the 5.9 billion nairas declared for 2023, highlighting the strong financial performance of the company despite the economic winds.
Solid performance of the fourth quarter
The fourth quarter of the fourth trimester of Fidson Healthcare jumped by an impressive 282.35% to 2.3 billion Nairas, against 627 million nairas in the same quarter of last year. This substantial growth reflects the improvement of operational efficiency and higher sales volumes in key products categories. The quarter income also experienced a remarkable increase, increasing by 92.96% to 24.4 billion nairas, against 12.6 billion nairas in the fourth quarter (OTC) produced.
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Distribution of annual income
For the full year 2024, the total turnover of Fidson Healthcare jumped 58.70%, going from 53 billion nairas during the year 2023 to 84.1 billion nairas. Ethical goods represented 55 billion Nairas, which represents 65% of the total sales, while the over -the -counter products contributed 26.3 billion Nairas, or 31.3% of total income. The consumer health products constituted the remaining 2.8 billion nairas, highlighting the diversified sources of Fidson income and its ability to capture a large base of consumers.
Despite the impressive income growth, the company was also faced with an increase in operational costs. The cost of sales increased by 54.09% in annual sliding, reaching 49.2 billion Nairas, against 31.9 billion nairas the previous year. A large part of this increase has been awarded to higher production costs associated with ethical and over -the -counter products.
However, Fidson’s gross profit increased to 34.9 billion Nairas, reflecting an increase of 65.69% in annual sliding compared to 21 billion nairas. This improvement was motivated by strategic prices, profitability savings and an increase in sales volume.
While Fidson has experienced strong growth in income and profits, the company has also experienced an increase in administrative and distribution costs. Administrative expenses increased by 33.31% in annual sliding, while sales and distribution costs increased by 46.37%. Sales costs represented 53.4% of total sales and distribution costs, while logistics represented 39.0%. These increases have been linked to enlarged marketing efforts and higher distribution expenses, reflecting business efforts to consolidate its position on the market despite inflationary pressures.
The operating profit for the 2024 fiscal year amounted to 12.9 billion Nairas, marking an increase of 62.17% compared to 7.9 billion Nairas the previous year. However, funding costs increased significantly from 161.38% in annual sliding to 5.4 billion Nairas, largely due to the increase in interest spending on loans and financial liabilities. At the same time, financial income also experienced a significant boost of 160.87%, reaching 60 million nairas, against 23 million nairas in 2023, mainly interests gained in loans and claims.
In the end, Fidson Healthcare announced a profit before an annual tax of 7.5 billion Nairas, reflecting an increase of 27.31% compared to 5.9 billion Nairas during the year 2023.
Asset position and financial stability
The total assets of Fidson Healthcare increased significantly during the 2024 fiscal year, reaching 73.3 billion Nairas, against 61.9 billion nairas the previous year. This increase highlights the strategic investments of the company in infrastructure, expansion of stocks and financial stability. Non -current assets amounted to 2.6 billion Nairas, compared to 23.7 billion nairas in 2023, goods, factories and equipment constituting a substantial part of 244.8 billion nairas. The growth of non -current assets indicates the commitment of the company to expand production capacities and to improve operational efficiency.
Current active ingredients also experienced a notable increase, going to 47.6 billion Nairas, compared to 38.2 billion Nairas the previous year. This growth was motivated by the rise in stocks, which totaled 23.9 billion nairas, and the preparations, which amounted to 12.5 billion nairas.
The Nigerian pharmaceutical sector has faced considerable challenges in recent years, several multinational players leaving the market due to the hostile trade environment significantly marked by the country’s foreign crisis. The departure of companies like Glaxosmithkline has left a significant gap in the industry.
However, local pharmaceutical manufacturers such as Fidson Healthcare quickly moved vacuum, strengthening domestic production and supply. The strong financial growth of Fidson in 2024 is considered a sign that the sector beats the country’s economic turbulence.
