
Fidson Healthcare Plc has reported a full-year pre-tax profit of N7.5 billion in its recent unaudited financial report, published on the Nigerian Exchange (NGX) on January 30, 2025.
This represents a 27.31% increase from the N5.9 billion reported for 2023, highlighting the company’s strong financial performance despite economic headwinds.
Strong Fourth-Quarter Performance
Fidson Healthcare’s fourth-quarter pre-tax profit surged by an impressive 282.35% to N2.3 billion, compared to N627 million in the same quarter last year. This substantial growth reflects improved operational efficiencies and higher sales volumes across key product categories. Revenue for the quarter also saw a remarkable increase, rising by 92.96% to reach N24.4 billion, compared to N12.6 billion in Q4 2023. This growth was largely driven by an uptick in demand for ethical goods and Over-The-Counter (OTC) products.
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Full-Year Revenue Breakdown
For the full year 2024, Fidson Healthcare’s total revenue surged by 58.70%, climbing from N53 billion in FY 2023 to N84.1 billion. Ethical goods accounted for N55 billion, representing 65% of total sales, while OTC products contributed N26.3 billion, or 31.3% of total revenue. Consumer Healthcare Products made up the remaining N2.8 billion, underscoring Fidson’s diversified revenue streams and its ability to capture a broad consumer base.
Despite the impressive revenue growth, the company also faced rising operational costs. The cost of sales increased by 54.09% year-over-year, reaching N49.2 billion, up from N31.9 billion in the previous year. Much of this increase was attributed to higher production costs associated with ethical and OTC goods.
However, Fidson’s gross profit surged to N34.9 billion, reflecting a 65.69% year-over-year increase from N21 billion. This improvement was driven by strategic pricing, cost efficiencies, and increased sales volume.
While Fidson experienced strong revenue and profit growth, the company also saw a rise in administrative and distribution costs. Administrative expenses increased by 33.31% year-over-year, while selling and distribution expenses climbed 46.37%. Sales expenses accounted for 53.4% of the total selling and distribution costs, while logistics made up 39.0%. These increases were linked to expanded marketing efforts and higher distribution expenses, reflecting the company’s efforts to consolidate its position in the market despite inflationary pressures.
Operating profit for FY 2024 stood at N12.9 billion, marking a 62.17% increase from N7.9 billion in the previous year. However, finance costs rose significantly by 161.38% year-over-year to N5.4 billion, largely due to higher interest expenses on loans and financial liabilities. At the same time, finance income also saw a significant boost of 160.87%, reaching N60 million, compared to N23 million in 2023, primarily from interest earned on loans and receivables.
Ultimately, Fidson Healthcare reported a full-year pre-tax profit of N7.5 billion, reflecting a 27.31% increase from N5.9 billion in FY 2023.
Asset Position and Financial Stability
Fidson Healthcare’s total assets grew significantly in FY 2024, reaching N73.3 billion, up from N61.9 billion in the previous year. This increase highlights the company’s strategic investments in infrastructure, inventory expansion, and financial stability. Non-current assets for the year amounted to N25.6 billion, compared to N23.7 billion in 2023, with property, plant, and equipment making up a substantial portion at N24.8 billion. The growth in non-current assets indicates the company’s commitment to expanding production capabilities and improving operational efficiency.
Current assets also saw a notable increase, rising to N47.6 billion from N38.2 billion in the previous year. This growth was driven by rising inventories, which totaled N23.9 billion, and prepayments, which stood at N12.5 billion.
The Nigerian pharmaceutical sector has faced considerable challenges in recent years, with several multinational players exiting the market due unfriendly business environment significantly marked by the country’s foreign exchange crisis. The departure of companies like GlaxoSmithKline left a significant gap in the industry.
However, local pharmaceutical manufacturers such as Fidson Healthcare have moved swiftly to fill the void, strengthening domestic production and supply. Fidson’s strong financial growth in 2024 is seen as a sign that the sector is beating the country’s economic turbulence.