Profit at one of Nigeria’s biggest consumer healthcare companies, Fidson Healthcare Plc, grew almost fourfold to a record as the Lagos-headquartered firm rode on a robust growth in revenue and a significant reduction in net exchange differences.
This is Fidson’s strongest half-year performance on record, with profit after tax surging 298 percent to N6.02 billion for the period ended June, according to its unaudited financials on the Nigerian Exchange.
The leap in earnings comes as the company accelerated its growth strategy, expanded its distribution network, and leveraged operating efficiencies despite persistent macroeconomic headwinds.
The pharmaceutical group’s unaudited results, filed with the bourse, show revenue climbing 68 percent year-on-year to N62.64 billion from N37.25 billion in the first half of 2024.
Analysts attribute the growth to volume expansion in key therapeutic categories, targeted price adjustments, and deeper penetration into regional markets.
Gross profit rose 70 percent to N25.71 billion, maintaining a 41 percent margin even as administrative expenses nearly doubled and finance costs rose by half.
Operating profit jumped 177 percent to N12.16 billion, underscoring the management’s ability to scale revenue faster than operating expenses.
Foreign exchange losses, at N2.08 billion, remained a snag, though significantly lower than the N4.39 billion recorded a year earlier. Profit before tax surged to N8.99 billion, almost four times the 2024 figure, while earnings per share climbed to 263 kobo from 66 kobo.
The balance sheet expanded by 17 percent in six months, with total assets rising to N86.08 billion from N73.49 billion at year-end 2024.
Non-current assets grew modestly to N27.27 billion, but current assets rose sharply to N58.81 billion, driven by a more than threefold increase in trade receivables and higher prepayments.
Shareholders’ equity increased 25 percent to N29.75 billion, reflecting profit retention. However, the company’s short-term obligations also swelled, with current liabilities up 16 percent to N45.87 billion, driven largely by a doubling of interest-bearing borrowings and a near 90 percent increase in trade payables.
Fidson’s aggressive working capital deployment signals confidence in sustained demand but also heightens exposure to liquidity and refinancing risks in a high-interest-rate environment.
The firm recently unveiled a N30 billion capital raise plan as it continues to chart its course across Nigeria and Africa’s pharmaceutical landscape.
As Nigeria’s pharmaceutical sector continues to face supply chain pressures, rising input costs, and currency volatility, Fidson’s H1 performance positions it as one of the few players successfully navigating the squeeze, but market watchers are waiting to see if its second-half results can be sustained without margin erosion.
Fidson, with a market capitalisation above N95 billion, has seen its shares gain 167 percent since the beginning of 2025, ranking it 22nd on the NGX in terms of year-to-date performance, according to African Stock Exchange, a data analytics firm.
A unit of Fidson’s stock was priced at N41.45 as of Monday, August 11, a significant leap for a company that began the year at N15.50 per share. “Investors should, however, take caution of FIDSON’s recent poor performance, having lost 12 percent of its value in the past four weeks,” the platform stated.