GSK Nigeria records mixed performance in Q1

Our Reporter

GLAXOSMITHKLINE Consumer Nigeria Plc recorded mixed performance in the first quarter with modest improvement in the bottom-line amidst decline in sales.

Key extracts of the three-month interim report and accounts of GlaxoSmithKline Consumer Nigeria (GSK Nigeria) Plc for the first quarter ended March 31, 2020 showed that turnover dropped to N4.99 billion in March as against N5.01 billion in March 2019.

Profit before tax meanwhile rose from N150.64 million to N166.87 million while profit after tax increased to N113.47 million in March 2020 compared with N102.44 million in March 2019.

The board of directors of GSK Nigeria had recommended distribution of N657.7 million to shareholders as cash dividends after the healthcare company posted well-rounded performance in 2019. Shareholders will receive a dividend per share of 55 kobo.

Key extracts of the audited report and accounts of GSK Nigeria for the year ended December 31, 2019 showed that turnover rose from N18.41 billion in 2018 to N20.76 billion in 2019. Profit before tax also improved from N1.16 billion to N1.17 billion. Profit after tax increased from N617.62 million to N917.10 million.

GSK Nigeria engages in the manufacturing, marketing and distribution of a wide range of healthcare brands including consumer healthcare brands such as Panadol, Sensodyne, Andrews Liver Salt and Macleans and a range of pharmaceuticals including Augmentin,  Ampiclox and Amoxil; Zentel  and and vaccines.

A breakdown of the dividend indicates that GlaxoSmithKline Plc (UK ), which holds 46.4 per cent equity stake through its wholly owned subsidiaries, Setfirst Limited and SmithKline Beecham Limited, will receive N305.2 million while Nigerian shareholders will receive N352.5 million as cash dividends.

GSK Nigeria had in 2016 concluded a N22.6 billion divestment of its drinks business to the Japanese group, Suntory Beverage and Food Limited (SBF).

GSK Nigeria transferred the ownership to Suntory Beverage & Food Nigeria Limited, a subsidiary of the SBF, on October 1, 2016.

GSK Nigeria’s drinks business included the two iconic brands-Lucozade and Ribena. The sale included the company’s business of manufacturing, bottling, marketing, distributing and selling of the Ribena and Lucozade brands in Nigeria and all assets attached to or deployed in connection with the business.

Since then, the retained business of GSK Nigeria has been its consumer healthcare wellness, oral healthcare, nutrition and pharmaceutical and vaccines businesses.