FX Relief Did the Heavy Lifting
Fidson's unaudited nine-month results, filed with the Nigerian Exchange, show a drugmaker whose top line grew solidly but whose bottom line was transformed by what stopped going wrong. Revenue growth of 21% and a wider gross margin delivered a 25.4% rise in operating profit to ₦21.24 billion — respectable, but well short of the near-50% jump in pre-tax profit.
The gap was closed below the operating line. A year ago, currency losses of ₦4.16 billion carved a hole in the accounts; this period they shrank to ₦104.3 million as the naira steadied. Finance costs also fell by more than a quarter, with interest on commercial paper and other liabilities dropping sharply alongside lower bank-loan interest. Together, the two lines account for the bulk of the ₦5.89 billion increase in pre-tax profit.
Costs Are Climbing With Expansion
The results are not cost-free growth. Administrative expenses rose 65.8% to ₦16.42 billion and selling and distribution costs climbed about 50% to ₦11.51 billion, both far outpacing revenue — a sign that Fidson is spending heavily to expand and distribute its products. Income tax also rose about 54% to ₦6.05 billion, an effective rate of roughly 34%.
Earnings per share rose only 12.7% to ₦3.91 despite the 47% profit jump, because the share base is larger after a ₦21.36 billion share issue credited to share premium during 2026. That issue also explains how equity more than doubled to ₦60.01 billion, giving the balance sheet a thicker cushion even as the company invests.
What Investors Watch Next
Fidson has already beaten its full-year 2025 pre-tax profit with a quarter to spare, and the shares have risen about 52% this year. The questions for the final quarter are whether the cost lines — administration and distribution in particular — keep compounding faster than sales, and whether the calmer currency environment that flattered this result holds. If both break the right way, the nine-month run-rate points to a record full year; if costs keep climbing at twice the pace of revenue, the operating leverage investors are paying for will be harder to find.
