For Fidson Healthcare Plc, its newly built World Health Organisation (WHO)-standard factory made all the difference in 2017 financial year, driving its profit growth by 235 per cent in profit after tax (PAT) to N1.1 billion for the year ended December 31, 2017, up from N317 million in 2016.

Audited financial results of the indigenous pharmaceutical firm showed that its revenue grew by 84 per cent to N14.056 billion, up from N7.655 billion in 2016.

With this impressive performance, the management of the company has proposed 20kobo dividend per 50kobo share translating to 300 per cent increase over 5kobo paid the previous year.

A statement by the company attributed this sterling performance to the significant competitive advantage of its WHO-standard production plant commissioned into operation a year ago.

“Products from the new facility as well as volume increase from existing products were largely responsible for this remarkable growth. The plant increased the company’s factory-based revenue by over 200 per cent in 2017, primarily due to an increase in production volumes and the introduction of new product lines. A portion of its new products are medicines that cater to low income earners, with the quality consumers have come to expect from Fidson,” the company stated.

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With the WHO-standard factory, Fidson said it is highly focused on extensive brand building as part of its long-term strategy and aims to expand its intravenous fluid lines to meet demands.

A close analysis of the financial statement filed to the Nigerian Stock Exchange (NSE) revealed 91 per cent rise in cost of sales from N3.6 billion in 2016 to N6.9 billion in 2017. An increase in the marketing and distribution expenses gave rise to corresponding increase in total overhead (administrative and selling and distribution expenses), which rose 53 per cent to N4.7 billion in 2017 from N3.1 billion in 2016.

Increased working capital to drive growth and a hike in interest rates from financial institutions pushed up finance cost to N1 billion in 2017 from N690 million, indicating increase by 45 per cent.

Despite the rise in total cost, the company recorded a 127 increase in operating profit, which grew from N1.1 billion in 2016 to N2.5 billion in 2017.

Profit before tax (PBT) rose by 256 per cent from N443 million in 2016 to N1.57 billion in 2017, while PAT grew from N317 million to N1.1 billion. This growth led the company to close the year with earnings per share 71kobo, up from 21kobo in 2016.