GSK Plc, the leading pharmaceutical company has released its 2012 Audited accounts with revenues jumping 17.6% year on year to N25.3billion (2011: N21.5billion). Operating profit at the end of the period was 15% higher at N3.9billion on the back of income from other sources as operating expenses sliced over half of gross profit. GSK at the end of the period posted a pre-tax profit of N4.1billion and post tax profit of N2.8billion.
Earnings per share at the end of the period improved to N2.95 from N2.4 during the year. Return on Average Equity at the end of the period was 28.7%, a return very few stocks on the NSE will beat. GSK traded for N49 today (30/4/2013) and has risen 152% in the last one year. The current share price is a 17X multiple on his earnings.
GSK is currently debt free and still has a better competitive advantage to its competitors. Inventory turnover has increased from 2.76 last year to 3.3 this year, showing the company is shipping drugs better that it did last year.
GSK may not look cheap but its price is just right for a buy.
GSK Plc 2012 audited accounts is posted on the website of the NSE