Fidson Healthcare’s nine-month profit jumps 47% as FX pressure eases

Fidson Healthcare Plc grew its nine-month net profit by 47.2 percent to N11.74 billion in 2026, outpacing 21 percent revenue growth as lower foreign-exchange losses and finance costs boosted earnings.

Revenue rose to N112.61 billion in the nine months ended September 2026, from N93.08 billion a year earlier. Gross profit increased 28.1 percent to N48.94 billion, pushing gross margin to about 43.5 percent from 41.1 percent.

Operating profit climbed 25.4 percent to N21.24 billion. Administrative expenses, however, rose 65.8 percent to N16.42 billion, while selling and distribution costs increased 50.3 percent to N11.51 billion, signalling that the cost of expanding and distributing the business is growing quickly, even as gross profitability improves.

Most of the earnings boost came from foreign exchange. Net exchange losses narrowed to N104.3 million from N4.16 billion in the same period of 2025. Finance costs also fell 27.4 percent to N3.73 billion from N5.14 billion.

Together, these top-line items’ performance helped push profit before tax up 49.5 percent to N17.79 billion, while profit after tax rose to N11.74 billion from N7.97 billion.

Net cash generated from operating activities surged to N32.62 billion from N8.82 billion. However, the increase was supported by a N23.72 billion contribution from higher trade and other payables, along with N17.53 billion released from prepayments. Meanwhile, receivables absorbed N18.25 billion, and inventory absorbed N10.41 billion. The operating cash improvement is substantial, but it cannot be attributed solely to stronger underlying trading.

Investment also accelerated. Purchases of property, plant and equipment reached N9.97 billion, compared with N5.06 billion in the corresponding 2025 period. Investing cash outflow consequently widened to N9.96 billion from N5.40 billion.

Financing activities consumed N16.44 billion, against N3.41 billion a year earlier, reflecting heavier borrowing and repayment flows, as well as dividend payments rising to N3.60 billion from N2.29 billion. Cash and bank balances nevertheless increased to N10.93 billion from N7.83 billion.

The pharma giant also expanded its balance sheet with total assets reaching N125.41 billion, compared with N87 billion at September 2025, while equity more than doubled to N60.01 billion. The 2026 statements record a N21.36 billion share issue credited to share premium, strengthening the equity base alongside retained earnings. Total liabilities stood at N65.40 billion.

Fidson shares currently trade at N83.50, giving the company a market capitalisation of N250.73 billion. Its year-to-date share-price return is 51.82 percent.