Shareholders of Fidson Healthcare Plc, has approved 5kobo dividend that was recommended for the 2015 financial year. The dividend is below 15 kobo that was paid in 2014 accounting year. However, shareholders at the company 17th Annual General Meeting (AGM) in Lagos called on the board of directors to reduce their level of exposure to foreign exchange in terms of raw materials importations and high financial charges to the banks.
Responding to issues raised by the shareholders concerning the company performance and operations. Chairman of the company Mr Felix Ohiwerei noted that if they have paid above 5 kobo, they will have to borrow more in order to increase their capacity, which will amount to working for the bank, instead of shareholders.
He said in order to conserve capital for operations; they have to reduce dividend payout for the 2015. Ohiwerei cautioned that the constraining ugly factors that are currently rearing their heads in 2016, such as declining value of Naira, high inflation and cost of production is a major challenge facing the manufacturing sector.
On the issue of foreign exchange challenge, the Managing Director Mr Fidelis Ayebae said they are looking at reducing their exposure, in the area of raw materials. Stressing that in pharmaceutical, they are constrained on the level of things they can source locally.
While assuring stakeholder that the board and management will continue to give their best, by improving operating facility and continued prudent management of resources.