Fidson Healthcare posts N5.9 billion pre-tax profit in 2023 with ethical drugs as major revenue source 

According to the company’s audited financial statement for 2023, it recorded N53.1 billion in revenue, representing a 30.6% increase from the N40.6 billion in revenue posted in 2022.  

About 61% of its revenue came from the sale of ethical products. Ethical products are drugs, injectables and infusions which are available for purchase by consumers exclusively upon presentation of a valid prescription. 

Fidson Healthcare which is the most valuable healthcare company listed on the NGX, has quite a large catalogue of drugs it manufactures including anti-infectives, anti-malarial, dermatological medicines, gastrointestinal medicines, and supplements, among others.  

Key Highlights (FY 2023 vs FY 2022) 

Revenue: N53.1 billion, +30.6% YoY  

Cost of sales: N32.0 billion, +36.3% YoY 

Gross profit: N21.1 billion, +36.5% YoY 

Selling and distribution expenses: N5.5 billion, +13.1% YoY  

Operating profit: N8.0 billion, +6.8% YoY  

Profit before tax: N5.9 billion, +2.4% YoY  

Profit for the year: N3.6 billion, -13.8% YoY  

Total assets: N62.0 billion, +44% YoY  

Apart from its ethical drugs, its over-the-counter drugs generated about N15.9 billion in revenue, marking a 33.2% increase from the N11.9 billion made in 2022.  

In 2023, Fidson Healthcare reported a net exchange loss of N1.3 billion, representing a 66.3% increase from the N760.6 million exchange loss in 2022. As a pharmaceutical business, it is quite impressive how Fidson Healthcare was able to reduce its FX exposures in 2023.  

Breaking down the company’s finance cost, it is observable that the interest on bank loans declined to N1.5 billion, from 2022’s N1.6 billion despite rising interest rates during the fiscal year.

Breaking down the company’s finance cost, it is observable that the interest on bank loans declined to N1.5 billion, from 2022’s N1.6 billion despite rising interest rates during the fiscal year.

However, interest on commercial paper appreciated to N594.1 million, representing an 870.6% increase from the N61.2 billion.  

It mirrors the company’s shift towards commercial papers in 2023, as Fidson Healthcare raised about N15 billion through the program last year.