The economic crunch notwithstanding, shareholders of GlaxoSmithKline Consumer Nigeria Plc, a subsidiary of GSK Plc, had course to smile as the company declared a dividend payout of 30k per share for the year ended December 2016.
Judging by fundamentals, the company recorded a turnover of N14,384,785,000. Profit Before Tax dropped 83% percent to N185,891,000 from N1,065,601,000 recorded a year ago. Similarly, Profit After Tax increased by 172 percent to N2,378,145,000 from N873,134,000 declared in the same period of 2015.
Speaking at the 46th Annual General Meeting in Lagos, Mr. Edmund Onuzo, Chairman, Board of Directors, attributed the company’s decline in profitability to a number of factors including the challenging operating environment, such as a period of recession in the year under review.
According to him, the divestment of the company’s drinks business in the third quarter of 2016 was also a factor.
Thankfully, he said this divestment has however enabled the company to align with the global strategy and focus on its core businesses with the aim of driving improved margins and sustainable growth.
“Although the immediate outcome of the divestment is a leaner and nimble company, focus on healthcare would enhance GSK’s brand portfolio.”
The chairman further emphasised that GSK would continue to support its brand through increased marketing and promotions just as he assured that the company would drive increased local manufacturing and local content contribution to increase margins to address foreign exchange fluctuations.
“In 2017, GSK would focus on growing major brands like Sensodyne, Panadol, Andrews Liver Salt and Macleans to drive baseline profitability. “These are part of our sustainability measures, we are now more focused on our core strength and going forward, we hope to aggressively build our consumer healthcare portfolio,” he said.
At the meeting, the Board recommended for approval a dividend of N359 million to be paid to shareholders, representing 30k per ordinary share.
The shareholders approved the Board’s recommendation, lauded the Board for its performance and urged them to continue to work tirelessly to take the company to greater heights and also produce a better result in the new financial year.