FIDSON HEALTHCARE : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

FIDSON HEALTHCARE PLC Lagos, Nigeria

UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2023

FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2023

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 2023

Statement of Profit or Loss and Other Comprehensive Income

FOR THE YEAR ENDED 30 JUNE 2020		2023		2022
		July-Sep	Jan-Sep		July-Sep	Jan-Sep
	Notes	₦'000	₦'000		₦'000	₦'000
Revenue	5	14,793,989	40,373,977	11,048,672	31,428,149
Cost of sales	6	(10,290,718)	(24,813,124)		(6,422,339)	(16,938,149)
Gross profit		4,503,271	15,560,853	4,626,333	14,490,000
Other operating income	7	141,121	338,802	272,561	684,824
Administrative expenses	8	(1,553,109)	(5,607,211)	(2,739,465)	(5,264,618)
Selling and distribution expenses	9	(1,332,099)	(3,642,342)		(600,813)	(3,562,461)
Operating profit		1,759,185	6,650,102	1,558,615	6,347,745
Finance costs	10	(582,229)	(1,379,729)	(488,862)	(1,285,998)
Finance income	11	7,066	19,947		21,066	34,331
Profit before tax	12	1,184,021	5,290,320	1,090,999	5,096,078
Income tax provision	13a	(384,807)	(1,719,354)		(354,575)	(1,656,225)
Profit for the Period		799,214	3,570,966	736,424	3,439,853
Earnings per share - basic (in kobo)
Basic and diluted		35	156	32	150

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FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2023

Statement of financial position

As at 30 September 2023

		Sep-23		Dec-22
ASSETS	Notes	₦'000		₦'000
Non-current assets
Property, plant and equipment	14	19,437,807	19,565,588
Right of use assets	15	327,621	380,817
Investment property	16	-	-
Intangible assets	17	44,763	23,544
Available- for-sale investments	18a	6,290	4,800
Loans and receivables	18b	15,813	14,692
Other non-current financial asset	19/19a	181,761	174,542

		20,014,056	20,163,983
Current assets
Inventories	20	13,459,348	14,606,786
Trade and other receivables	21	9,312,814	4,249,396
Prepayments	22	4,237,497	1,845,990
Cash and cash equivalents	23	3,856,327		2,115,136
		30,865,985		22,817,308
Total assets		50,880,042	42,981,291
Equity and liabilities
Equity
Issued share capital	32	1,147,498	1,147,498
Share premium	33	4,829,614	4,829,614
Retained earnings		13,250,530	10,941,812
Financial Asset reserve	34	1,845	355
		19,229,487	16,919,279
Non-current liabilities
Interest bearing loans and borrowings	24	7,748,029	5,746,439
Obligation under Finance Lease	25	-	-
Retirement benefit obligation	26	262,325	263,602
Government grant	27	1,099,427	651,291
Deferred tax liability	13c	1,389,945	1,389,945
		10,499,726	8,051,277
Current liabilities
Trade and other payables	29	9,637,346	7,015,730
Interest bearing loans and borrowings	24	3,836,873	5,798,413
Bank Overdraft	23	742,705	290,004
Other financial liabilities	30	5,000,000	3,000,000
Obligations under Finance Lease	25	-	55,581
Government grant	27	106,411	346,595
Deferred revenue	28	-	-
Income tax payable	13b	1,719,354	1,396,272
Unclaimed dividend	31b	108,140	108,140
		21,150,828	18,010,735
Total liabilities		31,650,554	26,062,012
Total equityand liabilities		50,880,041		42,981,291

SIGNED ON BEHALF OFTHE BOARD OF DIRECTORS ON 26 October 2023

__________________________	___________________________	__________________________
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
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FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2023

Statement of Changes in Equity
	Share	Share	Retained	Available-	Total
	capital	premium	earnings	for-sale
				reserve
	₦000	₦000	₦000	₦000	₦000
At 1 January 2022	1,043,180	4,933,932	7,774,138	585	13,751,835
Bonus Issue	104,318	(104,318)	-	-	-
Profit for the year	-	-	3,439,853	(1,030)	3,438,823
Other comprehensive income for the year, net	-	-	-	-	-
Total Comprehensive Income for the year	-	-	3,439,853	(1,030)	3,438,823
Dividends (Note 32)	-	-	(1,043,180)	-	(1,043,180)
At 30 September 2022	1,147,498	4,829,614	10,170,811	(445)	16,147,478
At 1 January 2023	1,147,498	4,829,614	10,941,812	355	16,919,279
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 32)	-	-	(1,262,248)	-	(1,262,248)
At 30 September 2023	1,147,498	4,829,614	13,250,530	1,845	19,229,487

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FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2023

Statement of Cash Flows

		Sep-23		Sep-22
Operating activities:	Notes	₦'000		₦'000
Profit before tax		5,290,153	5,096,078
Adjustments to reconcile profit before tax tonet cash flows
Depreciation of property, plant and equipment	14	821,474	604,807
Depreciation - Right of use assets	15	46,068	70,908
Impairment loss	8	250,000	100,000
Gain on disposal of plant, property andequipment	7	(6,758)	(48,212)
Net exchange difference	8	1,016,757	1,807,348
Depreciation of investment property	16	-	536
Grant income	7	(264,368)	(568,351)
Amortisation of Intangible assets	17	59,029	38,696
Interest income on loans and receivables	11	(1,121)	(341)
Interest income on other non Current Asset	11		-
Interest income on fixed deposit	11	(13,265)	(13,265)
Finance costs	10	1,379,729	1,285,998
Employee benefit expense	26	-	-
Amortisation of deferred revenue	28	-	(4,750)
Changes in working capital:
(Increase)/ decrease in trade and other receivables	21	(5,063,418)	(2,783,910)
Decrease / (increase) in prepayments	22	(2,391,506)	(732,670)
(Increase)/ Decrease in inventories	20	(804,148)	(2,688,910)
Increase in government grant	27	207,950	76,498
increase in other financial liabilities	30	2,000,000	850,000
(Decrease)/increase in trade and other payables	29	3,642,311	1,720,413
		6,168,887	4,810,873
Income tax paid	13b	(1,396,272)	(1,379,367)
Benefits paid	26b	(1,277)	-
Net cash flow from operating activities		4,771,338	3,431,506
Cash flows from investing activities:
Purchase of property, plant & equipment	14	(902,341)	(4,007,643)
Additions to intangible assets	17	80,247	46,429
Interest received	11	13,265	13,265
Proceeds from sale of property, plant and equipment		1,175,000	1,175,000
Investment in other Financial Asset	18c		520,252
Liquidation of investment in other financial asset	19	(181,761)	(172,136)
Liquidation of investment in other financial asset	19	-	173,162
Net cash utilised by investing activities		184,410	(2,251,671)
Cash flows from financing activities:
Payments of finance lease liabilities	25	(55,582)	(71,687)
Interest paid on loans & borrowings	10	(1,379,729)	(1,285,998)
Dividend paid	31	(1,262,248)	(1,043,180)
(Payment)/refund of unclaimed dividend	32b	-	-
Proceed from loans & borrowings	24a	2,500,000	5,019,826
Loan repayment	24a	(2,452,943)	(895,551)
Net cash from financing activities		(2,650,501)	1,723,410
Net increase/(decrease) in cash and cash equivalents		2,305,247	2,903,245
Net foreign exchange difference		(1,016,757)	(1,807,348)
Cash and cash equivalents at the beginning of the year		1,825,132	1,696,491
Cash and cash equivalents at the end of the Period	23	3,113,622	2,792,389

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FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2023

Notes to the financial statements.

1. 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.
2. 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:
3. • 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.

1.2 Financial period

These Financial Statements cover the financial period 30 September 2023 with comparative amounts for the year ended 30 September 2022.

1. Significant accounting policies
2. 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).
   The financial statements have been prepared on a historical cost basis, except for certain available-for- sale 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 when otherwise indicated.
3. Summary of significant accounting policies
   The following are the significant accounting policies applied by the Company in preparing its financial statements:

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FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2023

Notes to the financial statements.

2.2.1 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.

2.2.2 Fair value measurement

The Company measures some financial instruments and non-financial assets at fair value at each reporting date. Also, fair values of financial instruments measured at amortized cost are disclosed in Note 41a.

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, assuming that market participants act in their economic best interest.

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FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2023

Notes to the financial statements.

1. Fair value measurement (cont'd)
   A fair value measurement of a non-financial asset takes into account 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. Refer to Note 42b for fair value hierarchy.
2. Revenue recognition
   Revenue is recognised to depict the transfer of promised goods or services to the customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
   Revenue is recognised by applying a five-step approach:
3. • Identify the contract
   • Identify the separate performance obligations in the contract
   • Determine the transaction price
   • Allocate the transaction price to separate performance obligations
   • Recognise revenue when (or as) each performance obligation is

The Company recognises revenue from the following major sources:

• Sale of Ethical Products
• Sale of Over the Counter (OTC) products.

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 it transfers control of a product or service to a customer.

Interest income

For all financial instruments measured at amortised cost, interest income or expense is recognised using the effective interest rate (EIR), which is the rate that exactly discounts the estimated future cash payments or receipts through the expected life of the financial instrument or a shorter year, where appropriate, to the net carrying amount of the financial asset or liability. Interest income is included in finance income in the profit or loss.

Dividends

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

2.2.4 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.

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FIDSON HEALTHCARE PLC

Unaudited report and financial statements

For the period ended 30 September 2023

Notes to the financial statements.

1. Government grants (cont'd)
   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 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).
2. 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 2% 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:
3. • 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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