For its last full year of operation, 2023, GlaxoSmithKline Consumer Nigeria has posted a pre-tax profit of N815.45 million, representing a 34.3% decline from the N1.24 billion posted in FY 2022.
In FY 2023, the group posted a revenue of N16.44 billion, representing a 35.22% decline from the N25.38 billion posted in FY 2022. In Q4 2023, the company posted a revenue of N5.55 billion, representing a 12% year-on-year growth from the N4.96 billion posted in Q4 2022.
The group recorded an impairment loss of N102.19 million in FY 2023, up by 1627% from the N5.92 million recorded in FY 2022.
Key Highlights FY 2023 (FY 2022, % Change)
- Revenue: N16.44 billion (N25.38 billion, -34.3%)
- Cost of sales: N10.35 billion (N18.45 billion, -43.9%)
- Gross profit: N6.09 billion (N6.93 billion, -12.1%)
- Profit before tax: N815.45 million (N1.24 billion, -34.3%)
- Profit for the period: N510.80 million (N771.15 million, -33.8%)
- Basic and diluted earnings per share: 43 kobo (64 kobo, -32.8%)
- Total Assets: N31.75 billion (N29.39 billion, +8.03%)
What you should know
The primary driver of the company’s revenue in 2023 emanated from the sale of consumer healthcare products, accounting for approximately N13.39 billion, constituting 81.4% of the total revenue. This marked a notable surge of 55.1% compared to the N8.63 billion generated by the segment in the previous year, 2022.
The consumer healthcare segment features over-the-counter (OTC) medicines and oral care (Macleans and Sensodyne).
The pharmaceutical brands of the company, encompassing antibacterial products, vaccines, and prescription drugs, contributed a total revenue of N3.05 billion. Nevertheless, this marked a substantial 81.8% decrease from the N16.75 billion generated by the segment in the preceding year, 2022.
Despite contributing the lesser revenue, the pharmaceutical segment contributed the higher liabilities, accounting for N14.07 billion (70.9%) of the company’s N19.85 billion total liabilities.
It was disclosed in the company’s H1 2023 financial results that GSK Consumer Nigeria Plc will cease to exist, as GSK Group communicated its strategic decision to discontinue the commercialization of prescription medicines and vaccines in Nigeria through GSK Consumer Nigeria Plc.
The group then announced plans to transition to a local third-party direct distribution model for GSK products.
On January 15, 2024, the Securities and Exchange Commission officially endorsed a Scheme of Arrangement between GlaxoSmithKline Consumer Nigeria Plc and the ordinary shareholders of the company. Subsequently, on January 16, 2024, the Federal High Court of Nigeria approved the scheme. The certified true copy of the Court Sanction was submitted to the Corporate Affairs Commission of Nigeria on January 19, 2024, marking the effective date of the scheme.
Following these developments, the Group concluded its trading activities on December 31, 2023, and is currently in the process of delisting its shares from the Nigerian Exchange Group (NGX). At present, the Group is exclusively engaged in activities essential for winding down the business and affairs of the organization.
