Shares of Fidson Healthcare Plc rose by 24% in the first week of February 2025, with a trading volume of 8.8 million shares, securing a spot on the NGX’s advancers list for the week.
The stock closed at N20.90, having moved steadily upward from Monday to Friday and surpassing the N19 mark.
This movement followed the company’s recent financial report for the full year of 2024, released on February 3, 2025, which indicated a pre-tax profit of N7.5 billion, reflecting a 27.31% year-on-year growth from N5.9 billion in 2023.
The company also reported a 58.70% full-year revenue increase, from N53 billion in 2023 to N84.1 billion in 2024, fueled by a surge in ethical and Over-The-Counter (OTC) products.
Market trend
Fidson Healthcare began January 2025 on a strong note, recording a monthly trading volume of 15.4 million shares.
- Aside from the trading week beginning January 19th, the company has maintained a consistent upward trajectory, finishing each week in the green year-to-date.
- In the first week of February 2025, the bullish momentum surged even further, driving the stock past the N19 mark, buoyed by a robust weekly trading volume of 8.8 million shares.
According to the NGX weekly market report for the week ending February 7, 2025, Fidson ranked 5th among stocks, trailing behind Cadbury and International Energy Insurance Plc.
Possible drivers of bullish price action
In mid-September 2024, Fidson announced a strategic partnership with three Chinese firms to develop a new pharmaceutical plant in the Lekki Free Trade Zone, aimed at combating HIV in Nigeria.
- The partners—Jiangsu Aidea Pharma, Nanjing PharmaBlock, and the China-Africa Development Fund—are set to collaborate on investment opportunities in West Africa’s pharmaceutical markets.
According to Dr. Fidelis Ayebae, Founder and Managing Director, the joint venture will pool resources and knowledge to enhance healthcare across the continent.
The wave of bullish fundamental events continued as Fidson released its full-year report on February 3, 2024, revealing significant growth.
- Revenue soared by 58.70% year-over-year, rising from N53 billion to N84.1 billion, driven by strong demand for its pharmaceuticals.
- Profits from core operations reached N12.9 billion, reflecting a notable 62.17% increase YoY.
- Furthermore, pre-tax profit climbed to N7.5 billion, up 27.31% from the previous year’s N5.9 billion.
While the specific drivers behind the bullish price action remain speculative, the combination of this strategic partnership and the strong financial performance for FY 2024 likely contributed to an increase in investor confidence in February.
Appointments
The company recently announced the appointment of three new directors: Dr. Babatunde Kabir Ipaye, Mr. Philip Ikechi Ejiofor, and Mr. Oshoke Michael Ayebae. This decision, effective January 1, 2025, was made during a Board meeting in December 2024.
Commenting on the appointments, Chairman Mr. Olusegun Adebanji remarked, “We are excited to welcome these distinguished professionals to our board. Their extensive expertise and strategic vision will undoubtedly enhance our ability to fulfill our mission and drive the company forward.”
