Fidson Healthcare Plc held its Annual General Meeting for FY 2018 on September 26, 2019, at the Banquet Hall, Sheraton Hotels and Towers, Lagos. In keeping with its policy to return to shareholders, a dividend of 15kobo per share was proposed and approved at the AGM.
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The company recorded an increased turnover of 15% from N14.06billion in FY 2017 to N16.23 billion in FY 2018. However, because of the increased cost of sales from 49% margin in 2017 to 61% and increased Finance cost (up by 92%), Fidsons’ Profit Before Tax for the period was down to N160.9 million from N1.6bilion in FY 2017.
Having concluded its Rights Issue in June 2019, the company has already taken steps to improve its financial structure. The capital raise was towards 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 will see it manufacture for its West African operations going forward. This, alongside market penetration strategy and cost optimization are a few of many initiatives to sustain growth and return value to shareholders that the company is currently pursuing.
According to the Chairman of the board, Mr 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 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.