GSK pays over N600m dividends amidst fear of exit from Nigeria

Despite the economic crunch, the business outlook of GlaxoSmithkline Consumer Nigeria Plc seems promising as the drug manufacturer recorded modest success as reflected in its financial position in its year-end report.

While addressing shareholders of the company at its 52nd annual general meeting last Wednesday, Mr Edmund Onuzo, the Chairman, noted that the outstanding results recorded at the end of the business year was a testament to its tenacity and resilience in pushing through challenges.

Specifically, he said, the 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 just as 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 kobo 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.”

The GSK boss also hinted that GSK Global is fully committed to getting ahead of disease and achieving its aim to positively impact the health of 2.5 billion people globally by 2030. It is focused on improved performance through the commercialisation of its portfolio of innovative specialty medicines and vaccines.

Reacting to fears about the future outlook of the company, Onuzo said, “While we expect sustained economic growth in 2023, we cannot overlook some factors which must be duly considered in this quest for economic growth and development in Nigeria. The factors 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 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 the GSK Global and our advisors regarding the best way to navigate the current circumstances. We will let you know as the discussions progress.”

Speaking on insinuations regarding the planned exit of the company from Nigeria operations, Mrs. Bisi Bakare President Pragmatic Shareholders Association said it beggars belief that the company would planned such a move without carrying shareholders along.

On his part, the National Coordinator, Independent Shareholders Association of Nigeria (ISAN) Moses Igbrude expressed worries, stressing that there were huge implications inherent in the planned exit of GSK operations from Nigeria.

Another shareholder, Mr Nonah Awoh, said it was disheartening to note that the company had just nine staff at its manufacturing plant, a development he said raised further fears about the planned exit of the company from Nigeria.