The board of directors of Fidson Healthcare Plc has assured existing and prospective investors of growth despite the Covid-19 pandemic ravaging the entire globe.
This was made known to shareholders at the company 21st Annual General Meeting (AGM) in Lagos.
Just as shareholders approved the payment of 15 Kobo dividend per ordinary shares amounting to N225 million for the full year ended December 2019.
The Meeting which was virtual had few shareholders in attendance, in compliance to the covid-19 guildline on social distancing.
The dividend which is subject to the deducon of appropriate statutory withholding tax, will be paid on the 24th of July 2020.
Commenting on the company future outlook, chairman of the board Mr Segun Adebanji, expkained that they have commenced the implementation of strategic priorities aimed at sustains the leadership position of the company within the healthcare industry.
Adding that close attention is being paid to human capital development to ensure a robust succession planning process and empower the future leaders of the company.
“We have also sought and secured useful internaonal collaboraon and partnership that will enhance the future prospects of the company. Given the importance of research and development in our industry”.
Noting that “we hope to access government intervenon funds for purposes of retooling the manufacturing capacity and deepen our product pipeline in order to address consumer demands and strengthen our market leadership”.
On its manufacturing facilities, he said “Our expansion initiative have continued throughout the year under review. At present, the production output has increased to 4 million units monthly of different SKUs”.
“We are making additional investments in terms of automating machines and processes to conform to international good manufacturing pracces (GMP). We are also expanding producon capacity to accommodate contract manufacturing partnerships, including the recent partnership agreement with GlaxoSmithKline Plc (GSK) signed during the year under review”.
Pointing out that “With this continiuous expansion, we hope to increase output and efficiency in order to reduce variable costs, thereby ensuring affordability on the part of our numerous patrons, despite the challenging operang environment”.
“On a positive note, the COVID-19 pandemic is providing opportunities to explore development of new products for treating infectious diseases. The pandemic has also compelled the government to priorize the healthcare sector, with the pharmaceucal industry set to benefit from these policy changes”.
He said while the impact of the pandemic could lead to lower profit margins and reduced cash flow in the business in the interim. These risks are being mitigated to secure the sustainability of the business in the near to long-term.
“The following are some of the measures we are taking: Price increase, Finance cost, Inventory, and We are taking advantage of government policies geared towards promoting local manufacturers by invesng in product development and adequately equipping our factory for increased and efficient local production”.
“These investments will enable us respond quickly to potential demand increase. Overall, the board believes that your company will weather most of the shocks caused by the pandemic and emerge successful in the months ahead”.