Fidson Healthcare Plc has reported a profit before tax of N14.96 billion for the 2025 financial year, representing a strong 94% increase from N7.7 billion recorded in 2024.
This is according to the company’s audited financial statement for the period ended December 31, 2025, which shows robust topline expansion and improved profitability despite mounting cost pressures.
The pharmaceutical firm also proposed a total dividend of N3.6 billion for the year, translating to N1.50 per share, more than 50% increase from the N2.29 billion (N1.00 per share) declared in 2024.
Key highlights (2025 vs 2024)
- Revenue: N119.06 billion (up 41% YoY)
- Cost of sales: N69.84 billion (up 42% YoY)
- Gross profit: N49.23 billion (up 40% YoY)
- Operating profit: N21.95 billion (up 67% YoY)
- Pre-tax profit: N14.96 billion (up 94% YoY)
- Profit after tax: N9.88 billion (up 125% YoY)
- Earnings per share: 412 kobo vs 192 kobo
- Total assets: N80.29 billion (up 9% YoY)
- Retained earnings: N23.98 billion (up 47% YoY)
Driving revenue growth
Fidson’s performance was driven by strong demand across its pharmaceutical portfolio, with revenue rising 41% to N119.06 billion.
- The company recorded a 40% increase in gross profit to N49.23 billion, reflecting solid pricing and volume growth, although margins came under pressure from rising input costs.
- Operating profit climbed by 67% to N21.95 billion, supported by improved operational efficiency and scale benefits.
- Profit after tax surged by 125% to N9.88 billion, driven by strong core earnings and improved cost absorption.
- Other operating income rose by 45% to N887.55 million, boosted by secondary revenue sources.
However, the cost of sales rose sharply by 42% to N69.84 billion, just as administrative expenses expanded to N12.4 billion while impairment provisions on certain assets rose to N238 million.
Cost pressures, FX losses weigh on earnings
Despite the strong earnings growth, Fidson faced notable headwinds during the review period.
- Finance costs increased by 30% to N7.13 billion, suggesting higher borrowing costs
- The company recorded a net exchange loss of N6.01 billion, up 10% year-on-year, highlighting continued exposure to foreign exchange volatility.
- Income tax expense rose significantly by 54% to N5.08 billion, in line with higher profitability but weighing on net earnings.
Finance income, however, grew by 140% to N144 million, providing a modest offset to rising financing costs. Overall, profitability expanded strongly, but with cost pressures indicating a challenging operating environment for pharmaceutical firms, which rely mostly on imported inputs.
Balance sheet performance
Fidson also recorded improvements in its balance sheet, with asset growth and reduced leverage, strengthening its financial position.
- Total assets increased by 9% to N80.29 billion, driven largely by a 24% rise in non-current assets to N31.42 billion.
- Cash and cash equivalents declined slightly by 4% to N4.71 billion.
- On the liabilities side, total liabilities declined by 2% to N50.09 billion, indicating improved debt management.
- Income tax payable surged by 81% to N4.25 billion, reflecting higher tax obligations.
- Total equity attributable to shareholders rose by 35% to N30.2 billion, supported by robust earnings growth.
- Retained earnings increased by 47% to N23.98 billion, suggesting a solid buffer for reinvestment and future expansion.
- Share capital recorded modest expansion by 5% to N1.2 billion.
The strong growth in retained earnings puts Fidson in good standing to reinvest profits to support long-term growth and reduce reliance on external financing.
Current stock performance on NGX
The market has yet to react to the earnings and dividend announcement, as the stock opened and closed flat at N100 per share.
- The share price of Fidson began the year at N50.10 and has since gained 99.6% on that price valuation, ranking it 17th on the NGX in terms of year-to-date performance.
- With 2.4 billion shares outstanding valued at N240 billion as of Thursday, April 2, Fidson Healthcare is currently the 44th most valuable stock, about 0.185% of the Exchange equity market value.
With a higher dividend payout and strengthened equity base, the company appears well-positioned to balance shareholder returns with reinvestment, even as it navigates a volatile macroeconomic and currency environment.
