Drug maker Fidson posts 28% jump in half-year profit

Nigerian pharmaceutical firm Fidson Healthcare has announced a significant boost in its financial performance, with net profit climbing 28.2% to N7.7 billion for the six months ending June, compared to the same period last year. This growth was fueled by a robust increase in revenue, which rose to N74.5 billion from N62.6 billion.

The company attributed the strong top-line performance to improved sales in both over-the-counter and prescription drugs. Nigeria's rapidly growing population, the largest in Africa, is creating substantial demand for pharmaceuticals, particularly ethical or prescription drugs, which have been a key focus for Fidson's sales strategy. These prescription drugs accounted for over 60% of Fidson's turnover last year.

Fidson's positive outlook is further supported by Nigeria's national objective to increase domestic drug production to 70% of total output by 2030, a move aimed at import substitution. The government's plan to commission 11 new pharmaceutical manufacturing projects this year also bodes well for the sector.

Despite a 47.2% increase in administrative expenses, largely due to higher personnel costs, Fidson managed to improve its cost of sales ratio to 57% from 59% a year prior. A substantial reduction in net foreign exchange loss by 87.5% also contributed to a healthier operating profit. Profit before tax saw a 30% rise to N11.7 billion.

Looking ahead, Fidson Healthcare announced it will offer a dividend per share of N1.50 for the 2025 financial year, marking a 50% increase in its annual cash distribution. This N4.5 billion payout is scheduled for distribution on July 31, following the company's annual general meeting.