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…Paid Over N1.9 billion dividend In The Last 10years
As part of its strategic growth drive, the management of Fidson Healthcare Plc has projected a revenue base of N35, 125 billion by year 2023, even has said that the company has paid over N1.9 billion as dividend to shareholders in the last 10 years of its operations.
According to Fidson Healthcare, its 5-year projections which commences from the 2019-2023 financial year, will see to its profit before tax, if every other being equal hitting the N5, 971 billion treasury hold.
Addressing the stock market community on Wednesday on the Lagos floor of the Nigerian Stock Exchange (NSE) during the company’s fact behind the figures, the Managing Director/CEO Dr. Fidelis Ayebae who made these remarks, hinted that the company is back on the positive trajectory in its first quarter of 2019 financials, upping from its downside in 2018 financial year.
On the company’s strategic imperatives for the 5-year projections, Dr. Ayebae said the management will embark on lower finance costs in its operations, increase its product prices as well as invest in energy cost savings.
“We shall embark on increased capacity utilization, introduction of new products’ and elimination of middle men.
“Fidson’s revenue has been relatively stable with a CAGR of about 13.7 per cent over the last fivers. In 2017, the new factory commenced full commercial production, as evidence by the 83.7 per cent growth in revenue between full year 2016 and full year 2017.
“Growth is being driven by increased focus on the ethical product segment given the market demand and increasing margins. The company also intends to introduce a number of new high value products with very good volumes in order to maximize production capacity while also increasing revenue and profitability. In addition, volume growth will be enhanced by the increased capacity of the factory with increase in production time to 24 hours following a switch to gas generators.
Speaking on the company’s Right Issue which is expected to be taken 100 per cent by shareholders, Dr. Ayebae said about 60 per cent of the Rights Issue proceeds will be applied towards taking out expensive short-term debts, thereby reducing finance cost by about 50% on an annualized basis going forward.
He said the Company also intends to take advantage of the fund raise to inject fresh working capital into the business in order to maximize the opportunities that exist in the market.
“A revenue growth of over 20 per cent is projected for 2019, with increased focus on growing its ethical product segments. The business development work being done in hospitals to enhance the patronage of Fidson brands is also expected to increase demand. About 20 new products will be introduced into the market in 2019 to take advantage of the available capacity at the new factory.
“Further cost savings will be generated by directly importing key raw materials, taking advantage of the CBN window for manufacturers, and renegotiating with its suppliers. The Company is also switching its energy source from diesel to gas. Fidson expects, through its cost savings initiatives, to reduce production costs and increase gross margins significantly in 2019. The prospects look good for Fidson in the near-term, enabling the Company to cement its leadership position in the pharmaceutical industry” he added.
Photo Caption: From Left– Head, Human Resource, Fidson Healthcare Plc, Mrs. Joke Alli; Sales & Marketing Director, Fidson Healthcare Plc, Mr. Olugenga Olayeye; Chief Executive Officer, The Nigerian Stock Exchange (NSE), Mr. Oscar N. Onyema OON; Managing Director/CEO, Fidson Healthcare Plc, Mr. Fidelis Ayebae; Chairman, Fidson Healthcare Plc, Mr. Segun Adebanji and Head Finance & Account, Fidson Healthcare Plc during the Closing Gong Ceremony at the presentation of Facts Behind the Offer of Fidson Healthcare Plc at the Exchange in Lagos on Wednesday.
