Fidson Healthcare Plc has reported a significant increase in revenue, with earnings rising to N119.06 billion for the financial year ended December 31, 2025, supported by strong performance in its ethical drug segment.
The pharmaceutical company recorded N77.8 billion from ethical drug sales during the period, representing a 41.5 percent increase from N55.0 billion in 2024. This segment accounted for a major share of total revenue growth and reflects sustained demand across its portfolio of prescription-based medicines.
The overall revenue growth of 41 percent highlights robust sales momentum despite operating in a challenging economic environment characterised by rising input costs and foreign exchange pressures.
Brandspur Banking News Desk reports that Fidson’s profitability also strengthened significantly during the period, with profit before tax rising by 94 percent to N14.96 billion, compared to N7.7 billion in the previous year. Profit after tax surged by 125 percent to N9.88 billion, indicating improved operational efficiency alongside higher sales volumes.
The company’s financial performance was, however, influenced by increasing costs across key expense lines. Finance costs rose by about 30 percent to N7.13 billion, driven by higher borrowing expenses, including commercial paper issuances at elevated interest rates exceeding 23 percent.
Fidson also recorded a net foreign exchange loss of N6.01 billion, underscoring its exposure to currency volatility given its reliance on imported raw materials for pharmaceutical production.
Tax expenses increased by more than 80 percent to N4.25 billion, reflecting the higher profitability base, while finance income grew modestly to N144 million, offering limited offset against rising financial obligations.
On the balance sheet, total equity increased by 35 percent to N30.2 billion, supported by retained earnings which rose 47.1 percent to N23.98 billion. Earnings per share also improved significantly, climbing from 192 kobo in 2024 to 412 kobo in 2025, signalling stronger returns for shareholders.
The company adjusted its debt structure during the period, with interest-bearing loans declining by 48.7 percent to N3.60 billion. However, short-term obligations increased, with the current portion of loans rising by 15.9 percent to N10.41 billion.
Cost of sales grew by 42 percent to N69.84 billion, while administrative expenses increased to N12.4 billion. The company also recorded impairment provisions of N238 million, reflecting prudential accounting adjustments within its operations.
Despite the pressure from costs and foreign exchange losses, Fidson maintained strong revenue expansion driven largely by ethical drugs, which remain a core component of its business model. Ethical drugs include prescription medicines such as antibiotics, antimalarials, vaccines, and treatments for chronic illnesses, typically distributed through regulated medical channels.
Nigeria’s pharmaceutical sector continues to depend heavily on imports for active pharmaceutical ingredients and finished products, with major sourcing markets including India and China. This reliance exposes manufacturers like Fidson to exchange rate fluctuations and supply chain challenges.
The company’s dividend outlook also improved in line with its earnings growth, as it proposed a payout of N3.6 billion, equivalent to N1.50 per share, compared to N2.29 billion (N1.00 per share) in the previous year.
Overall, Fidson’s 2025 results reflect a combination of strong revenue expansion, improved profitability, and ongoing cost pressures, highlighting both the opportunities and structural challenges within Nigeria’s pharmaceutical manufacturing sector.
