Article Summary
- GlaxoSmithKline Consumer Nigeria Plc shareholders N657.73 million as dividends at the rate of 55 kobos per share.
- In July 2022, GSK Global concluded its demerger of the consumer healthcare business globally to create two world-leading companies – GSK Global and Haleon.
- GSK Global is now focused solely on biopharmaceuticals, while Haleon, an independent company, is focused on consumer healthcare to impact human health on a scale and deliver growth and performance for its shareholders.
Shareholders of GlaxoSmithKline Consumer (GSK) Nigeria Plc have approved the payment of N657.73 million as a dividend at the rate of 55 kobos per share proposed by the company.
The dividend was approved at the company’s 52nd Annual General Meeting (AGM), in Lagos on Wednesday.
Addressing shareholders at the meeting, the Chairman of the company, Mr Edmund Onuzo said that in July 2022, GSK Global concluded its demerger of the consumer healthcare business globally to create two world-leading companies – GSK Global and Haleon.
Onuzo noted that GSK Global is now focused solely on biopharmaceuticals, while Haleon, an independent company, is focused on consumer healthcare to impact human health at scale and deliver growth and performance for its shareholders.
- “Our key consumer healthcare brands in Nigeria like Panadol, Sensodyne, Macleans, and Andrews Liver Salt, have been spun off from GSK globally and now belong to Haleon on a global basis.
In 2022, we in GSK Nigeria distributed both GSK’s Global pharmaceutical products and Haleon’s consumer healthcare products.
We are grateful to the management and employees of GSK Global and employees of GSK Nigeria for their unwavering collaboration and commitment to following this process through,” he said.
Financial performance
Onuzo explained that the company’s performance in the year under review underscores its tenacity and resilience in pushing through challenges to provide results for the shareholders and other stakeholders.
- “Challenges in securing foreign exchange for the business notwithstanding, our Company’s revenue grew by 13% to N25.38 billion from N22.45 billion in 2021, while the cost of sales increased by 13% to N18.45 billion from N16.27 billion.
- Notably, the company’s profit after tax for 2022 increased by 17% to N771.15 million compared to N658.81 million reported in 2021.
- Despite the challenging terrain, the increase in Profit After Tax) (PAT) reflects a growing and profitable business.
- Therefore, your Board is pleased to recommend a dividend of N657.73 million, representing 55 kobos per ordinary share subject to the approval of Shareholders. Applicable taxes will be deducted at the time of payment and paid to the appropriate State or Federal tax authorities,” he said.
Future outlook
Onuzo said while the company expects sustained economic growth in 2023, it cannot overlook some factors which must be duly considered in this quest for economic growth and development in Nigeria.
- “The factors according to him include foreign exchange availability for businesses, insecurity, unemployment, and high cost of doing business, coupled with the uncertainty around fuel subsidy removal.
- The challenges ahead are quite significant, as some of you may have read reports from a few media houses regarding the supply constraints on GSK drugs in the market, we must mention that it continues to be very challenging with foreign exchange non-availability affecting our ability to settle foreign currency-denominated trade payables with product suppliers. As a result, it remains difficult to maintain a consistent supply to the market.
- We have also received communication from GSK UK and Haleon, the brand owners of our consumer healthcare products regarding the continuation of existing business relationships that necessitates the Board of Directors having further engagements with GSK Global and our advisors regarding the best way to navigate the current circumstances. We will let you know as the discussions progress,” he said.
What the shareholders said: Some of the shareholders who spoke at the meeting described the performance of the company as commendable despite the myriad of challenges confronting the business.
One of the shareholders, Chief Timothy Adesiyan applauded the board and management of the company for managing the business, as reflected in the improved performance in profit and revenue recorded by the company for the 2022 financial year.
- “The company’s financial performance for the 2022 financial year was good. GSK Plc has done well, especially with the economic hardship we are facing and the low purchasing power of consumers. It shows that the company saved for the rainy day,” Adesiyan said.
Also speaking, another shareholder – Mr Ibekwe Roberts lauded the company’s management for its financial performance despite the challenging macroeconomic outlook.
