In keeping with its policy to return to shareholders, the board of Fidson Healthcare Plc at its annual general meeting held recently in Lagos, proposed a dividend of 15kobo per share for its shareholders.
The company recorded a turnover of 15 percent from N14.06 billion in FY 2017 to N16.23 billion in FY 2018. However, because of the increased cost of sales which rose from 49 percent margin in 2017 to 61 percent and increased finance cost (up by 92 per cent), the company’s Profit Before Tax for the period fell to N160.9 million from N1.6 billion in FY 2017.
Having concluded its Rights Issue in June 2019, Fidsonsaid it has already taken steps to improve its financial structure. The capital raise was for refinancing expensive debt and working capital funding in a bid to improve its margins.
The company continues to leverage its WHO-certifiable factory, having recently executed a partnership with GSK that would see it manufacture for its West African operations going forward. This, alongside market penetration strategy and cost optimisation is a few of many initiatives to sustain growth and return value to shareholders that the company is currently pursuing.
According to it’s board chairman Segun Adebanji, Fidson continues to strengthen its operating facilities with expansion and retooling.
“Old machines and equipment have been disused and replaced with modern ones.
We are currently expanding our capacity utilization through increased production and contract manufacturing for other notable companies in the industry,” he said.
He also said the company is poised to reposition the business through business realignment and useful industry collaboration in order to take advantage of the growth opportunities in the market.