BY NKIRUKA NNOROM
Fidson Healthcare Plc has announced a significant increase of 181 per cent in its quarter two profit for the period ended 30th June, 2012.
According to the result for the period filed with the Nigerian Stock Exchange, a copy of which was obtained by Vanguard, the company rose from a negative financial position in 2011 to robust state, posting profit after tax of N152.83 million from deficit of N188.63 million.
This was after parting with N65.502 million as tax for the period. The profit before taxation also improved significantly to N218.34 million from the previous N188.386 million, thus representing huge 215 per cent increase.
The gross earnings at N1.99 billion was 49.3 per cent increase over N1.34 billion recorded in the same period of 2011.
Further breakdown of the result showed that total assets grew by 9.8 per cent to N10.22 billion, as against N9.31 billion in corresponding period of 2011.
However, the cash and bank balances went down by 45. 3 per cent to N11.62 million from N21.22 million, the selling, distribution cost and administrative expenses worsened over the period, rising by 16.3 per cent to close at N1.70 billion.
The result was in tandem with the management’s expectation that barring any disruption in its operation in the second quarter, the 2012 results would be an improvement on 2011.
The Financial Director, Mr. Olatunde Olanipekun, said, “Fidson, being an ingenious organisation has always found a way out, even in the murky waters of tough businesses and we know that we will perform even better in the coming year.”
The Chairman of the company, Mr. Felix Ohiwerei, noted that the company had recorded major improvement in its activities in the year, adding that its various strategic investments in its business were beginning to payoff.
He said, “in 2011 fiscal year, the company made history by being at the forefront in the war against faking, and we progressed in the development of the Biotech factory. We also restructured our sales policy and achieved considerable reduction in debtor’s balances.”
Olanipekun said the company had decided that in spite of the difficult situation to pay dividend in 2011, adding that it was in keeping with their track record of rewarding shareholders.
“Ordinarily, common sense will require that we don’t pay dividend given the harsh economic climate. But, we want to maintain a reputation.”