Shareholders of GlaxoSmithKline Consumer Nigeria plc at the company’s 45th annual general meeting held this week in Lagos gave their approval for the board to pay a dividend of N358.761million, representing 30kobo per share.
At the meeting, the shareholders of GlaxoSmithKline Consumer Nigeria plc received and adopted the audited financial statements for the year ended December 31, 2015 together with the reports of the auditors and audit committee.
The company faced significant performance challenges in 2015. While turnover remained flat at N30billion gross profit declined marginally by 4 percent compared to prior year. However, cost containment efforts by management coupled with the benefit of pioneer status in certain areas of the company’s operations had positive impact on the final results.
Gross profit declined by 4 percent to N10.326billion from N10.801billion. Profit before taxation declined by 58 percent from N2.752billion to N1.157billion.
Profit After Taxation dropped by 48 percent to N965.05million from N1.848billion. Shareholders’ Funds rose by 2 percent from N12.948billion to N13.185billion. Earnings Per Share declined by 50percent from 193kobo to 96kobo.
GlaxoSmithKline is one of the world’s leading research-based pharmaceutical and healthcare companies.
In Nigeria, GlaxoSmithKline has been a dominant and leading force in the healthcare industry, having a strong presence in the country for the past 40 years. GlaxoSmithKline operates globally with business units focused on pharmaceuticals, vaccines and consumer healthcare products.
GlaxoSmithKline Consumer Nigeria plc head office in Nigeria is located at 1, Industrial Avenue, Ilupeju, Lagos State with a manufacturing plant at Km 32 Igbesa Road, Agbara Industrial Estate, Agbara, Ogun State.
“Despite the prevailing challenging environment and drop in profitability, GSK has continued to invest significantly in marketing campaigns and activations to support our brands. Over the years, we have continued to upgrade our factory in Agbara to increase the local manufacture of our products and this has become even more critical especially in the face of high exchange rates. In recognition of the importance of access to products, GSK in 2015 embarked on an extensive review of its route to market strategies and had put in place a fit for purpose structure that will improve distributor investments and returns. The impact of the challenges is expected in the outer years. It is noteworthy to mention that our parent company, GSK plc, has continued to demonstrate support for the Nigerian business,” said Edmund C. Onuzo, chairman, GlaxoSmithKline Consumer Nigeria plc.
Speaking on the future of the company, he said, expressed cautious optimism as the company navigates another year.
“I would like to reiterate that, beyond the prevailing socio-economic and political challenges, our focus at GSK is to continually maximize existing business opportunities with renewed commitment to a sustainable business through investment, product innovation and capacity development,” he added.
“In January 2016, GSK received a non-binding offer from Suntory for the purchase of our Drinks business together with its assets. Following the receipt of the non-binding offer, Suntory had embarked on a due diligence exercise and the outcome of the process will be subject of further communication. We know that there are existing challenges and uncertainties in the economy, and the present administration seeks to salvage the dignity of this nation, however, our firm belief is that companies that offer quality products at competitive prices, while ensuring operational efficiencies, will always ahead. To this end, and all things being equal, we are determined to succeed in the market, improve on our performances and deliver superior returns to our shareholders,” Onuzo told shareholders.
Iheanyi Nwachukwu
