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

Pharmaceutical firm Fidson Healthcare, whose stock is up 99.6 per cent this year, enlarged net profit by 28.2 per cent in the year to June, relative to the same period of last year, enabled by a fairly strong top-line increase.

Its unaudited accounts published on Friday put revenue at N74.5 billion, up from N62.6 billion, and noted improvement in over-the-counter and prescription drugs as the catalysts of growth.

Population surge pressure in Nigeria, Africa’s most populous country, is fast fuelling a buoyant demand for drugs, especially ethical drugs on which Fidson has anchored sales in recent times.

Ethical or prescription drugs alone accounted for more than three-fifths of turnover for Fidson last year, making 2025 a banner year for the company, which British consumer healthcare multinational Haleon recently backed.

Nigeria expects domestic drug production to touch 70 per cent of total output by 2030 as part of a wider import substitution drive, brightening the outlook for the pharma scene.

The government plans to commission 11 pharmaceutical manufacturing projects this year, it announced a week ago.

Administrative expenses at half year climbed by 47.2 per cent to N9.6 billion, spurred by increased personnel costs, notably salary and wages.

Cost of sales as a ratio of revenue stood at 57 per cent, down from 59 per cent a year ago, indicating a slight easing in the strain direct costs place on revenue.

The company pared down net foreign exchange loss by 87.5 per cent, boosting operating profit.

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Profit before tax rose 30 per cent to N11.7 billion, while profit after tax advanced to N7.7 billion from N6 billion.

Total assets expanded by over one-third to N110.4 billion, as trade and other receivables more than doubled.

The company is offering a dividend per share of N1.50 for the financial year 2025, increasing its annual cash distribution by half.

The N4.5 billion payout will be distributed to shareholders on 31 July, following its annual general meeting later this month, Fidson said.