CardinalStone Earnings News - Fidson HealthCare Plc. H1'17 results - Earnings soar on gains from capacity expansion

CardinalStone Earnings News - Fidson HealthCare Plc. H1'17 results - Earnings soar on gains from capacity expansion
(Source: CardinalStone Research, Date: 25-Jul-2017)

CardinalStone Research:　Fidson HealthCare Plc. H1'17 results - Earnings soar on gains from capacity expansion

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　25 July　2017

Good afternoon,

Fidson HealthCare Plc. (FIDSON) H1'17 just out - Turnover rose by　155.3% YoY to N6.7 billion while after tax earnings rose substantially by 1077.5% YoY to N466 million.

Other highlights:

On a quarterly basis, turnover declined by 5.2% QoQ to N3.2 billion following a decline in growth of the Company's ethical segment by 79.0% QoQ. However, the over-the-counter (OTC) and consumer segments grew by 99.3% QoQ and 105.7% QoQ respectively.

The significant growth in the OTC and consumer segments is the direct result of FIDSON's expanded manufacturing capacity which enabled the Company meet growing demand for consumer healthcare products.

Operating profit margin increased by 633bps to 19.7% QoQ on the back of sustained efforts to contain operating expenses.

Strengthened by a relatively lower finance cost (9.8% QoQ), FIDSON reported an 89.5% QoQ growth in after-tax earnings to N305 million.

N'million

H1'17

H1'16

YoY

Q2'17

Q1'17

QoQ

Revenue

6,666.1

2,610.7

155.3%

3,244.4

3,421.7

-5.2%

Cost of Sales

(3,246.4)

(1,255.4)

158.6%

(1,589.0)

(1,657.4)

-4.1%

Gross Profit

3,419.7

1,355.3

152.3%

1,655.4

1,764.3

-6.2%

Distribution& Admin Expenses

(2,326.1)

(1,006.2)

131.2%

(1,017.8)

(1,308.3)

-22.2%

Other Income

(1.1)

8.4

-112.7%

4.2

(5.2)

-179.7%

Net Financial Charges

(407.1)

(299.4)

36.0%

(193.1)

(214.0)

-9.8%

Profit/Loss Before Tax

685.4

58.2

1077.5%

448.7

236.7

89.5%

Taxation

(219.3)

(18.6)

1077.5%

(143.6)

(75.8)

89.5%

Profit/Loss After Tax

466.1

39.6

1077.5%

305.1

161.0

89.5%

H1'17

H1'16

Q2'17

Q1'17

Gross profit margin

51.3%

51.9%

51.0%

51.6%

Operating Profit margin

16.4%

13.7%

19.8%

13.2%

PAT margin

7.0%

1.5%

9.4%

4.7%

Kindly click here for a copy of Fidson HealthCare Plc H1'17 results

　

Our target price on Fidson HealthCare Plc is under review.

　

Regards,

　

Feyisike Ilemore

Analyst, Consumer Goods

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