Fidson moves to boost profitability, business leverage
By Nsikan Ikpe
Fidson Healthcare, one of the leading names in the pharmaceutical and healthcare business in the country has expressed it’s readiness to boost its profitability and business leverage.
A wholly Nigerian enterprise that has grown its capacity over the years to now become leader in the Nigerian pharmaceutical sector, the company paid a dividend of 15 kobo per ordinary share to shareholders for the year ended December 31, 2018.
The company’s turnover for the period stood at N16.229 billion compared with N14.057 billion in the 2017 financial year, representing an increase 15.45 percent.
Gross profit however decreased by 11.7 percent from N7.155 billion in 2017 to N6.319 in the year under review, while operating profit stood at N2.047 billion compared to N2.549 billion in 2017, indicating a decrease of 19.7 percent.
Speaking at the 20th Annual General Meeting of the company, the Chairman, Fidson Healthcare, Mr.Segun Adebanji declared that “the company’s future is bright.”
Part of this optimism is hinged on the fact that having concluded its Rights Issue in June 2019, the company has already taken steps to improve its financial structure.
The capital raised in the exercise was for the purpose of refinancing its debt and also boosting working capital funding in a bid to improve its margins.In addition, the company continues to leverage its WHO-certifiable factory, having recently executed a partnership with GSK that will see it manufacture for its West African operations going forward. This, alongside its revamped market penetration strategy and cost optimization are a few of the many initiatives to sustain growth and return value to shareholders that the company is currently pursuing.
According to the Adebanji, Fidson also continues to strengthen its operating facilities through 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 outlined.
He also noted that the company is poised to reposition the business through business realignment and useful industry collaboration in order to take advantage of the growth opportunities in the market.
Fidson Healthcare Plc is engaged in the business of manufacturing, marketing and sales of pharmaceutical and healthcare products. The company currently runs a CGMP-complaint manufacturing facility and is one of the few Nigerian pharmaceutical manufacturers that are candidates for WHO GMP certification.