Fidson Healthcare Plc grew its bottom-line by 518 per cent to N407.19 million in 2019.
At the Annual General Meeting (AGM) held at the conference centre, Fidson Towers, Obanikoro, Lagos, shareholders also approved a dividend of 15 kobo per share while commending the company for ensuring that investors continue to get good value on their investments.
Fidson grew its profit for the year by 518 per cent from a loss of N97.45 million in 2018 to N407.19 million in 2019. This was despite a decrease in revenue by 13 per cent from N16.23 billion in 2018 to N14.06 billion in 2019, which was attributed largely to the impact of the rescheduled national elections on business operations in the first half of 2019 as well as ensuing consumer apathy.
Chairman, Fidson Healthcare Plc, Mr Segun Adebanji, said the company adopted several cost optimisation initiatives that ultimately led to the increase in profitability. Gross margin improved from 39 per cent in 2018 to 42 per cent in 2019. Administrative and sales expenses reduced by 13 per cent while finance cost dropped by over 10 per cent.
He said the proceeds from the company’s right issue in July 2019 were used to repay expensive loans, finance capital expenditure and working capital needs.
According to him, Fidson Healthcare continues to leverage it World Health Organisation (WHO)-compliant factory, introducing 10 new products in 2019, and went into an agreement with GlaxoSmithKline Plc to contract manufacture for them from 2021 onwards.
“This will, ultimately, drive an increase in output and efficiency, and bring variable costs of production down,” Adebanji said.
He assured that the board is committed to implementing strategic initiatives like international collaboration and research and development to drive sustainable growth as well as cement its leadership position in the industry.
“The Covid-19 pandemic has provided opportunities to explore the development of new products and with the increasing support of the government for the healthcare sector, the company anticipates that it would successfully mitigate some of the shocks caused by the pandemic and emerge successful in the months ahead,” Adebanji said.