On Thursday, May 24th during its 47th Annual General Meeting, shareholders of GlaxoSmithKline Consumer Nigeria Plc approved the declared special dividend of ₦8.4 billion and an ordinary dividend of ₦478.49 million, both of which translates to ₦7.10 and 40 kobo per share, respectively.
The reason behind the company’s 2017 financial year dividend increase is due to a supposed “growth in the GSK reserve level over the past few years”, as well as profit accumulation resulting from the company’s recent divestment of its drinks business.
Speaking during the AGM, the Chairman of the company’s Board of Directors, Mr Edmund Onuzo, spoke about efforts being made to maximise the company’s investments.
In his words:
For us as a company, maximizing shareholder’s return is high on our agenda. Given our current cash position and with money set aside for local manufacturing investment, returning cash back to investors via dividends is in line with this thinking on returns. -Onuzo
He noted that the sale of the company’s drinks arm to Suntory Foods and Beverages Limited has helped the company “to cash-in on the returns from the divestment”. He further noted that he is glad the divestment has yielded the right dividend for the company’s shareholders.
He further stated that the company has tightened its portfolios, driven investments, and is now focused on aligning with its global businesses.
He finally assured shareholders of the company’s determination and commitment to continually drive growth through restructuring, with the aim of ensuring profitability and increased dividends for shareholders.
The shareholders commended the Board of Directors for their efforts.
Meanwhile, recall that the company had recorded poor profit for the full year ended December 31st, 2017. While its revenue increased to ₦14.3 billion in 2016 compared to ₦16.0 billion in 2017, gross profit fell sharply from ₦8.9 billion in 2016 to ₦4.4 billion in 2017.
The results have, however, begun on a good note this year judging by its recently released Q1 2018 result which saw the company’s revenue grow by 9%, standing at ₦4.21 billion for the period under consideration as against ₦3.85 billion year to date.
Profit after tax also increased from ₦8.26 million in March 2017 to as much as ₦258.29 by March 2018.
The company had in 2017 upgraded its production facilities and readied itself for a set of innovative projects aimed at driving growth.
The company was incorporated in June 1971. Its shares traded at ₦21.25 during yesterday’s NSE session.
Hyundai and Kia to set up an assembly plants in Ghana by 2022
The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants in Ghana.
Few weeks after Twitter announced its plans to open its first African office in Ghana, Hyundai and Kia have also concluded plans to set up an assembly plants in Ghana by 2022. The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants.
Ghana’s Minister for Trade and Industry, Alan Kyerematen announced this on Twitter.
Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development programme = 3,600 assembly & 6,600 manufacturing parts jobs in Ghana. #InvestforJobs pic.twitter.com/JMHAmlM5VI
— Alan John Kyerematen (@AlanKyerematen) April 22, 2021
“Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development program = 3,600 assemblies & 6,600 manufacturing parts jobs in Ghana.
“The local assembly of vehicles, 3,600 direct and indirect jobs would be created in Ghana, and the addition of components and parts manufacturing will also add about 6,600 direct and indirect jobs.”
Why this matters
More foreign companies are shunning Nigeria in favour of Ghana. Recently, Nairametrics reported that Amazon is set to situate its African Headquarters in South Africa, a multi-billion dollar investment that is projected to create over 20,000 jobs both directly and indirectly.
Following its move to Ghana, Twitter CEO, Jack Dorsey cited a number of human rights-related reasons for the choice of Ghana over Nigeria. Added to this are rising insecurity, stifling government regulations and the gapping infrastructural deficit bedevilling Nigeria. Consequently, our nation is steadily losing opportunities to attract foreign companies that could be very instrumental in bridging its unemployment gap which is currently over 30%.
Passports: Backlog of undelievered passports to be fixed before May 31st – Minister
The government also announced the launch of a new passport application system, which would be aided by fast track services nationwide.
The Federal Government disclosed that all backlogs of undelivered passport requests would be fixed before May 31st, and announced the launch of a new passport application system, which would be aided by fast track services nationwide.
This was disclosed by Minister of Interior, Rauf Aregbesola, in a press briefing with newsmen on Thursday.
What the Minister said
“On or before May 31st, all backlogs of undelivered requests for passports will be totally met, unless such applications have a problem,” he said.
“But before the deadline, the problematic application would be contacted, so that we know what’s wrong with the applications. Assuming there would be no problem, every successful application for a passport would be given a passport on or before May 31st,” he added.
The new passport process
The Minister disclosed that the FG will launch a new passport application process which would come into effect soon.
“When you finish your application process, there would be a waiting period of six weeks to collect your passport, however, if you want an express service, there would be fast track centres nationwide, to meet requests for express passport users,” he said.
What you should know
- Recall Nairametrics reported last month that the Federal Government inaugurated the Nigeria Immigration Service Passport Express Centre, which is a partnership with the private sector to enable the government offer passport services to Nigerians and make passports available in a maximum of 72 hours of a successful application.
- The FG also launched the Electronic Temporary Passport to cater for Nigerians desirous of returning home but whose national passport is not available.
Nairametrics | Company Earnings
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- Africa Prudential Plc posts profit after tax of N381.35 million in Q1 2021.
- Sovereign Trust Insurance Plc notifies stakeholders of 26th Annual General Meeting.
- Dangote Cement Plc to hold AGM on May 26th
- Linkage Assurance Plc proposes N500million as final dividend for 2020, and a bonus issue on its existing shares.