Fidson Healthcare PLC, a composite pharmaceutical company quoted on the Nigerian Stock Exchange,NSE has just reported that its Q2 2016 net profit was down by 88%.
The company’s gross revenue for the period was down by 38% to NGN2,6 billion compared to NGN4,0 billion declared last year within the same quarter.
Fidson however, cut down its cost of sales by 31% to NGN1,2 billion compared to NGN1,8 billion expended last year. There are implications that the Fidson has gone a serious cost cutting exercise as administrative expense was cut by 35% to NGN NGN1,0 billion versus NGN1,47 billion the company paid our last year same quarter.
Fidson will need to raise more capital to solidify the base of the company. Its total current liabilities at the end of the quarter is now NGN5,3 billion compared to its current assets totalling about NGN3,2 billion on a comparison basis.
With a current ratio of 0.6, Fidson will need to source for alternative mean to improve its working capital.
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