GSK Consumer Nigeria plc has declared a dividend of N1.243 billion to be shared at N1.30k per share for its shareholders for the financial year ended December 2013. The company has also declared it resolve to invest in it industries across Nigeria to ensure its products are made more available to its consumers.
The declaration was made at the 43rd annual general meeting of the company held in Lagos on Wednesday.
Speaking on the company’s performance, Olusegun Osunkeye, chairman, the company’s board of directors, thanked the shareholders for their believe in the company and their continuous investment in the growth of the company.
“I am pleased to announce to you that your company’s performance and operating results for 2013 were impressive. Turnover was N29.183 billion, a 15 percent increase over the previous year… the board will be recommending a dividend of N1.243 billion to be paid to shareholders, representing N1.30k per share subject to appropriate withholding tax deduction,” Osunkeye said.
At the AGM, Osunkeye declared his decision to resign as the chairman board of directors after serving for 14 years on the board of GSK Consumer Nigeria plc. In a moving speech, Osunkeye thanked the shareholders for their belief in GSK Nigeria as a company with high integrity, which has over the years invested and increase the capital base of the company.
“It has been my privilege and honour to have served on the board of directors as chairman for 14 years since my election on February 15, 2000. I note with satisfaction that our company has been remarkably successful over the past 14 years. From a turnover of N2.6 billion in 2000, to N29.2 billion in 2013; profit before tax of N97.1 million in 2000, rose to N4.3 billion for the year 2013,” Osunkeye said.
To avoid any vacuum, a member of the board, Edmund C. Onuzo was presented by the board as the newly elected chairman. The decision was admitted and approved by the shareholders with immediate effect.
Speaking after his appointment, Onuzo thanked the shareholders for their continuous support for GSK Consumer Nigeria, promising to ensure their rights were protected with an overall goal of improved returns on their investment.
GSK Nigeria recorded a revenue growth of 15.3 percent year-on-year to N29.18 billion, for full year 2013, compared with N25.3 billion in the 2012 financial year. The remarkable growth in revenues, which is close to the rise in 2013 nominal GDP (real growth plus inflation) are attributable to product development in the consumer healthcare segment and continued sales, marketing and distribution efforts as well as its strong presence across Nigeria.
The company has also been able to sustain a steady growth due to the brand equity enjoyed by virtue of its parent company (GlaxoSmithKline plc) and robust product portfolio. Net income for the period increased 3 percent to N2.91 billion, compared with N2.82 billion for 2012. Cost-to-sales was relatively stable at 60 percent for the 2013 financial year, which can be attributed to stable prices of major raw materials.
Operating expenses (OPEX) grew 17.48 percent year-on-year (YoY) as against 15 percent for 2012 financial year, which was majorly fuelled by the 47.6 percent rise in administrative expenses. The growth in operating expenses may be attributed to GSK Nigeria’s push into new markets across West Africa for both pharmaceutical and consumer healthcare products to sustain market share.
GSK is the market leader among pharmaceutical companies in Nigeria with regards to overseas expansion which should be attributable to earnings and boost shareholders returns in the future. Other income declined 39.1 percent, further contributing to the 4.51 percent growth in operating profit with operating profit margin at 14.24 percent vs. gross margin of 39.76 percent.
Return on Average equity (ROaE), declined marginally to 23.65 percent in 2013 financial year from 26.2 percent in 2012, while return on average assets (ROaA) remained stable at 11.14 percent for the period. Earnings per share (EPS) increased by 3.37 percent to N3.05/share for financial year 2013, compared with N2.95/share in 2012, while net profit margins remained stable at 17 percent.
In their response, the shareholders thanked the management for their effort in keeping the company afloat despite the challenges. They also express their desire to have more Nigerians on the board of directors for GSK to encourage more local investors.
PATRICK ATUANYA
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