Fidson Healthcare Plc has recorded a remarkable 41 per cent surge in revenue to N119.06 billion in 2025, driven largely by a 41.5 per cent increase in ethical drug sales to N77.8 billion.
The figures were disclosed in the company’s audited financial statements for the year ended December 31, 2025. The performance reflects strong demand across its product portfolio, even as rising costs shaped the company’s operating environment. The growth in ethical drug sales, which rose from N55.0 billion in 2024, significantly supported the company’s topline expansion.
Profitability also improved markedly, with profit before tax climbing by 94 per cent to N14.96 billion from N7.7 billion in the prior year. This underscores the resilience of Fidson’s core operations despite macroeconomic pressures. Fidson’s strong earnings performance came amid notable cost pressures, reflecting the realities of operating in a high-interest and volatile currency environment. The company’s financials show rising financing and tax obligations, which partially offset revenue gains. Finance costs increased by about 30 per cent to N7.13 billion, indicating higher borrowing costs, including commercial paper issuances at rates above 23 per cent. The company recorded a net foreign exchange loss of N6.01 billion, highlighting continued exposure to currency volatility due to reliance on imported inputs. Tax expenses rose sharply by over 80 per cent to N4.25 billion, while finance income grew by 140 per cent to N144 million, offering only a modest offset to rising costs. Overall, while revenue and profit expanded strongly, the data reflect a challenging cost environment for pharmaceutical firms dependent on imports.
Beyond revenue and profit growth, Fidson’s balance sheet and cost structure reveal deeper trends shaping its financial position. The company made notable adjustments in its debt profile while managing rising operational expenses. Interest-bearing loans declined by 48.7 per cent to N3.60 billion, although the current portion of loans increased by 15.9 per cent to N10.41 billion. Cost of sales rose by 42 per cent to N69.84 billion, while administrative expenses increased to N12.4 billion, alongside impairment provisions of N238 million. Total equity grew by 35 percent to N30.2 billion, supported by a 47.1 percent increase in retained earnings to N23.98 billion. Earnings per share rose significantly from 192 kobo in 2024 to 412 kobo in 2025. These figures indicate that while profitability improved, cost pressures and foreign exchange losses remain key factors influencing overall performance.
Recent developments show Fidson navigating a high-cost financing environment while still delivering strong returns to shareholders. The company’s financial strategy reflects a balance between borrowing and reinvestment of earnings. Fidson raised commercial papers at interest rates of 23 percent and 24.75 percent, highlighting elevated borrowing costs compared to previous years. Profit before tax rose to N14.96 billion, while profit after tax surged by 125 percent to N9.88 billion. The company proposed a dividend of N3.6 billion, translating to N1.50 per share, up from N2.29 billion (N1.00 per share) in 2024. The strong growth in retained earnings positions the company to reinvest in operations and potentially reduce reliance on expensive debt financing.
Ethical drugs, which drove Fidson’s revenue growth, refer to regulated and prescription-based medicines produced under strict quality standards. These include antibiotics, antimalarials, vaccines, and treatments for chronic conditions such as hypertension. Ethical drugs are typically prescribed by medical professionals and form a critical part of healthcare delivery. Nigeria relies heavily on imports for these medicines, with most sourced from countries like India and China. Local production currently meets only a small fraction of national demand, creating exposure to foreign exchange risks. This segment remains central to Fidson’s growth, with ethical drug sales rising by 41 percent to N77.8 billion in 2025, reinforcing its importance in the company’s revenue mix.
