Fidson Healthcare Ltd.NSENG: FIDSON

Quarter 3 financial statement for 2024

Oct 30, 2024 at 8:26 AM UTC · Issued by Fidson Healthcare Ltd.

FIDSON HEALTHCARE PLC Lagos, Nigeria

UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2024

FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2024

Table of Contents
Statement of Profit or Loss and Other Comprehensive Income	1
Statement of financial position	2
Statement of Changes in Equity	3
Statement of Cash Flows	4
Notes to the financial statements	5

FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2024

Statement of Profit or Loss and Other Comprehensive Income

FOR THE YEAR ENDED 30 JUNE 2020	2024	2023
		Jul-Sep	Jan-Sep		Jul-Sep	Jan-Sep
	Notes	₦'000	₦'000		₦'000	₦'000
Revenue	5	22,476,572	59,729,222	14,793,989	40,373,977
Cost of sales	6	(12,944,723)	(35,096,951)		(10,290,718)	(24,813,124)
Gross profit		9,531,849	24,632,271	4,503,271	15,560,853
Other gains and losses	7	134,042	419,396	141,121	338,802
Administrative expenses	8	(1,940,417)	(5,212,167)	(1,130,208)	(4,340,455)
Impairment of receivables	7b	-	(200,000)	(250,000)	(250,000)
Net exchange difference	8c	(1,018,484)	(5,406,503)	(172,901)	(1,016,757)
Selling and distribution expenses	9	(2,285,802)	(5,425,828)		(1,332,099)	(3,642,342)
Operating profit		4,421,187	8,807,169	1,759,185	6,650,102
Finance costs	10	(1,552,774)	(3,701,638)	(582,229)	(1,379,729)
Finance income	11	10,125	30,363		7,066	19,947
Profit before tax	12	2,878,537	5,135,894	1,184,021	5,290,320
Income tax provision	13a	(949,917)	(1,694,845)		(384,807)	(1,719,354)
Profit for the Period		1,928,620	3,441,049	799,214	3,570,966
Earnings per share - basic (in kobo)
Basic and diluted		84	150		35	156

FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2024

Statement of Financial Position

As at 30 September 2024

		S ep - 2 4		Dec - 2 3
ASSETS	No tes	₦'0 0 0		₦'0 0 0
Non-current assets
Property, plant and equipment	14	24,219,561	22,672,162
Right of use assets	15	288,129	315,050
Intangible assets	16	79,685	25,577
Available- for-sale investments	17a	7,550	7,730
Loans and receivables	17b	17,271	501,193
Other non-current financial asset	18	193,369	184,432

		24,805,566	23,706,144
Current assets

Inventories	19	24,526,551	16,356,949
Trade and other receivables	20	8,786,073	5,887,827
Prepayments	21	15,270,606	5,253,563
Cash and bank balances	22	1,676,018		10,786,643
		50,259,248		38,284,982
Total assets		75,064,814	61,991,126
Equity and liabilities

Equity
Issued share capital	29	1,147,498	1,147,498
Share premium	30	4,829,614	4,829,614
Retained earnings		15,377,382	13,313,331
Financial Asset reserve	31	3,105	3,285

		21,357,599	19,293,728
Non-current liabilities

Interest bearing loans and borrowings	23	6,396,271	6,110,810
Retirement benefit obligation	24	252,158	252,158
Government grant	25	608,963	608,963
Deferred tax liability	13c	2,871,885	2,871,885

		10,129,277	9,843,816
Current liabilities
Trade and other payables	26	14,987,493	9,076,011
Interest bearing loans and borrowings	23	8,565,681	11,663,085
Bank Overdraft	22	841,393	781,784
Other financial liabilities	27	17,259,123	10,000,000
Government grant	25	95,515	392,863
Income tax payable	13b	1,694,845	839,094
Unclaimed dividend	28b	133,887	100,745

		43,577,938		32,853,582
Total liabilities		53,707,214	42,697,398

Total equity and liabilities		75,064,814		61,991,126

SIGNED ON BEHALF OF THE BOARD OF DIRECTORS ON 24 October 2024

__________________________	___________________________	__________________________
Fidelis Ayebae	Abiola Adebayo	Imokha Ayebae
Managing Director/CEO	Deputy Managing Director	Finance Director
FRC/2014/CIANG/00000002376	FRC/2013/PSNIG/00000002376	FRC/2021/001/00000023145
	2

FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2024

Statement of Changes in Equity
	Share	Share	Retained	Available-	Total
	capital	premium	earnings	for-sale
				reserve
	₦000	₦000	₦000	₦000	₦000
At 1 January 2023	1,147,498	4,829,614	10,941,812	355	16,919,279
Bonus Issue			-	-	-
Profit for the year	-	-	3,570,966	1,490	3,572,456
Other comprehensive income for the year, net	-	-	-		-
Total Comprehensive Income for the year	-	-	3,570,966	1,490	3,572,456
Dividends (Note 28)	-	-	(1,262,248)	-	(1,262,248)

At 30 September 2023	1,147,498	4,829,614	13,250,530	1,845	19,229,487
At 1 January 2024	1,147,498	4,829,614	13,313,331	3,285	19,293,728
Profit for the year	-	-	3,441,049	(180)	3,440,869
Other comprehensive income for the year, net	-	-	-	-	-
Total Comprehensive Income for the year	-	-	3,441,049	(180)	3,440,869
Dividends (Note 28)	-	-	(1,376,998)		(1,376,998)

At 30 September 2024	1,147,498	4,829,614	15,377,382	3,105	21,357,599

FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2024

Statement of Cash Flows

`		S ep -2 4		S ep -2 3
Operating activities:	Notes	₦ '000		₦ '000
Profit before tax		5,135,894	5,290,153
Adjustm ents to reconcile profit before tax tonet cash flows
Depreciation of property, plant and equipment	14	1,098,165	821,474
Depreciation - Right of use assets	15	26,921	46,068
Reversal in CWIP	14	225,287	-
Impairment loss/ (gain)	7	200,000	250,000
Gain on disposal of plant, property andequipment	7	(29)	(6,758)
Net exchange difference on loan	23	(5,406,503)	1,016,757
Amortisation of government grant	7	(297,348)	(264,368)
Amortisation of Intangible assets	16	81,668	59,029
Interest income	11	(3,731)	(1,121)
Interest income on fixed deposit	11	-	(13,265)
Finance costs	10	3,393,100	1,379,729
Operating cash flows before m ovem ent in working capital:
(Increase)/ decrease in trade and other receivables	20	(2,898,246)	(5,063,418)
Decrease / (increase) in prepayments	21	(11,492,578)	(2,391,506)
(Increase)/ Decrease in inventories	19	(8,169,602)	(804,148)
Increase in government grant	25	-	207,950
increase in loans & receivables	27	485,010	-
(Decrease)/increase in trade and other payables	26	5,911,482	3,642,311

Cash generated by operations		(11,710,512)	4,168,887
Income tax paid	13b	(839,094)	(1,396,272)
Benefits paid	24	-	(1,277)

Net cash flow (used)/ from operating activities		(12,549,606)	2,771,338
Cash flows from investing activities:

Purchase of property, plant & equipment	14	(2,871,444)	(902,341)
Additions to intangible assets	16	135,776	80,247
Interest received	11	20,338	13,265
Interest income on other non Current Asset	11	10,026	-
Proceeds from sale of property, plant and equipment		603	1,175,000
Liquidation of investment in other financial asset	18	-		(181,761)
Net cash (used in)/ from investing activities		(2,704,702)	184,410
Cash flows from financing activities:

Payments of finance lease liabilities		-	(55,582)
Interest paid on loans & borrowings	23a	(3,049,154)	(1,379,729)
Interest paid on financial liabilities	10	(343,946)	-
Dividend paid	29	(707,000)	(1,262,248)
(Payment)/refund of unclaimed dividend	29	33,142	-
Proceed from loans & borrowings	23	8,300,000	2,500,000
Proceed from other financial liabilities		7,259,123	2,000,000
Loan repayment (principal)	23	(10,814,595)	(2,452,943)

Net cash used in financing activities		677,570	(650,501)

Net increase/(decrease) in cash and cash equivalents		(14,576,737)	2,305,247
Net foreign exchange difference		5,406,503	(1,016,757)
Cash and cash equivalents at the beginning of the year		10,004,859	1,825,132

Cash and cash equivalents at the end of the Period	22	834,625	3,113,622

FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2024

Notes to the financial statements.

Corporate information.
The Company was incorporated as a private limited liability Company on 13 March 1995 and commenced business activities on 15 March 1995. The principal activities of the Company include manufacturing and distribution of pharmaceutical products. The Company's shares were quoted the Nigerian Stock Exchange on 5 June 2008. The issued share capital is held as to 38.86% directly by the Directors, 5.74% indirectly by the Directors and 54.94% by the Nigerian Public.
Composition of the financial statements
The Financial statements are drawn up in Naira, the functional currency of Fidson Healthcare Plc. In accordance with IFRS accounting presentation, the Financial Statements comprise:
- Statement of Profit or Loss and Other Comprehensive Income
- Statement of Financial Position
- Statement of Changes in Equity

•Statement of Cash flows

• Notes to the Financial Statements.
Financial period
These Financial Statements cover the financial period 30 September 2024 with comparative amounts for the period ended 30 September 2023.

Material accounting policy information
Basis of preparation and measurement
These financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) that are effective at 31 December 2023 and Financial Reporting Council Act as issued by the Financial Reporting Council of Nigeria (FRCN), and the requirements of Companies and Allied Matters Act (CAMA) of Nigeria.
The financial statements have been prepared on a historical cost basis, except for certain financial assets which have been measured at fair value. The financial statements are presented in the Nigerian Naira and all values are rounded to the nearest thousands (₦'000), except where otherwise indicated.
Reclassification
Certain reclassifications have been made to prior year's financial statements to aid comparability with the current year's financial statements. This reclassification has had no impact on prior year's reported position.
Material accounting policy information
The following are the significant accounting policies applied by the Company in preparing its financial statements:

FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2024

Notes to the financial statements.

2.3.1 Current versus non-current classification

The Company presents assets and liabilities in statement of financial position based on current/non- current classification. An asset is current when it is:

Expected to be realised or intended to sell or consumed in normal operating cycle.
Held primarily for the purpose of trading.
Expected to be realised within twelve months after the reporting period. Or
Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

It is expected to be settled in normal operating cycle.
It is held primarily for the purpose of trading.
It is due to be settled within twelve months after the reporting period. Or
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

2.3.2 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

In the principal market for the asset or liability, or
In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, if market participants act in their economic best interest.

A fair value measurement of a non-financial asset considers a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the relevant observable inputs and minimizing the use of unobservable inputs.

FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2024

Notes to the financial statements.

2.3.3 Revenue recognition

Revenue is recognised to depict the transfer of promised goods to the customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods.

Revenue is recognised by applying a five-step approach:

Identify the contract
Identify the separate performance obligations in the contract for Ethical and OTC when the products are delivered to the customer and for consumer healthcare when the customer picks up the product from the factory.
Determine the transaction price
Allocate the transaction price to separate performance obligations
Recognise revenue when (or as) each performance obligation is accomplished (delivery of Ethical and Consumer healthcare product)

The Company recognises revenue from the following major sources:

Sale of Ethical Products, ethical product category are infusion, capsule, and tablet. Revenue Is recognise when products are delivered to customers.
Sale of Over the Counter (OTC) products. OTC product category are tablet, capsule, and syrup. Herbal product. Revenue is recognised when products are delivered to customer.
The company also recognises revenue from manufacturing pharmaceutical products on behalf of its customers. The performance obligation in this type of contract involves the delivery of finished pharmaceutical drugs to its customers. Revenue is recognised overtime for this type of contract.

Revenue is measured based on the consideration to which the Company expects to be entitled in a contract with a customer and excludes amounts collected on behalf of third parties. The Company recognises revenue when the ethical and OTC products are delivered to the customer and or when the consumer healthcare customer picks their product from the factory.

Cost to obtain a contract.

In addition to the cost of the product, the Company pays sales commission to its employees and distributor for certain contracts that they obtain for sales of products. The Company has elected to apply the optional practical expedient for costs to obtain a contract which allows the Company to immediately expense sales commissions (included under sales expenses) because the amortisation period of the asset that the Company otherwise would have used is one year or less.

Dividends

Dividends are recognised when the Company's right to receive the payment is established, which is generally when shareholders approve the dividend.

2.3.4 Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the period that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related asset.

When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value amounts and released to the profit or loss over the expected useful life in a pattern of

FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2024

Notes to the financial statements.

Government grants (cont'd)
consumption of the benefit of the underlying asset by equal annual instalments. When loans or similar assistance are provided by governments or related institutions, with an interest rate below the current applicable market rate, the effect of this favourable interest is regarded as a government grant. The loan or assistance is initially recognised and measured at fair value and the government grant is measured as the difference between the initial carrying value of the loan and the proceeds received. The loan is subsequently measured as per the accounting policy in Note 2.2.12 (ii).
Taxes
Current income tax
The income tax assets or liabilities for the current year are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rates and tax laws used to compute the amount are determined in accordance with the Companies Income Tax Act (CITA) 2007 at 30% of total profit after deducting capital allowances and loss relief. Education tax is also assessed at 3% of the assessable profits.
Current income tax relating to items recognised outside the profit or loss are recognised outside profit or loss.
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
- When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
- In respect of taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:

When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

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