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.