GlaxoSmithKline Consumer Nigeria plc (GSK Nigeria), a subsidiary of GlaxoSmithKline plc, one of the world’s leading research-based pharmaceutical and healthcare companies has announced strong growth in its audited results for the year ended 31 December 2014, even as it approved bonus shares for shareholders.
The firm also declared a N717.5 million dividend for its shareholders for the year-end December 2014.
Speaking at the 44th AGM of the company held in Lagos, Edmund Onuzo, Chairman, GSK Nigeria Board of Directors stated that although the year 2014 was quite challenging, the Company remains committed to ensuring that its shareholders get the best returns on their investments.
“While operating expenses were well managed, the Company recorded an exchange loss of N893m as a result of the Naira devaluation by CBN in the last quarter of 2014. Furthermore, an increase in cost of goods sold of N1.234b as a result of the sale of brands by the GSK group to Lucozade Ribena Suntory (LRS), added to the decline in profit.” Onuzo said.
He continued: “Despite the decline in profitability, the Board will be recommending a dividend of N717.5million to be paid to shareholders, representing N75k per share, subject to appropriate withholding tax deduction. A bonus issue of one new share for every four existing shares was recommended for approval during this meeting.”
Group Financial Highlights
In the year under review, the company recorded a turnover of N30.52 billion growing 5 percent over the previous year. Profit before tax at N2.75b and profit after tax at N1.85b declined over the previous year by 36 percent and 37 percent respectively. Total assets grew to N27.96b from N26.2b during the year 2014.
Shareholders react positively
The shareholders approved the Board’s recommendation.
The shareholders expressed their excitement and applauded the new board for declaring a bonus issue of 1-4 for every shareholder after about ten years.
The shareholders acknowledged the socio-economic challenges faced by the company, and indeed other businesses in the year under review but stated that bonus and dividends declared by the management is a sign of better things to come amidst a very dynamic management of the company as led by the board.
In his comment, the Chairman, Ibadan Zone Shareholders Association Chief Sola Abodunrin, expressed the enthusiasm of the shareholders while advising the management to work at increasing profit as much as possible.
“We are very happy that GSK is giving us bonus this year after a long time. We are also happy that they are giving us a dividend of 75k per share despite the difficult circumstances, devaluation of the naira and reduced profit. GSK is a good company with good products and we really want them to tap into these potentials to further grow the company. We agree that GSK performance has impacted positively on the socio-economic status of Nigeria and we want that to continue,” Abodunrin said.
Innovation drives outlook
In line with the company’s strategic priority placed on continuity and stability, GSK Nigeria continues to innovate and meet changing consumer needs.
In 2014, the Company focused on growing new businesses and building deeper brand equity with the introduction of new products which include the recently reintroduced Horlicks drink and Panadol Suspension for children under the age of 12 years.
In the words of the Chairman, “We will continue to deploy appropriate marketing strategies and retool our route to market model to focus more on the different categories of our diverse businesses. Furthermore, the Company is committed to continued investment in commercial and factory operations.”
PATRICK ATUANYA
