Glaxosmithkline Consumer Nigeria Plc has encountered further cost increases in the second quarter that slowed down revenue improvement, BusinessDay learnt.
The percentage of the cost of sales from its revenue stood at 74.7 percent in H1’22 from 71.8 percent in H1’21.
The pharmaceutical company recorded 49 percent revenue growth to N14.8 billion in the first half of 2022 from N9.9 billion in the first half of 2021.
Also, the cost of sales was up 56 percent to N11.1 billion in H1’22 from N7.1 billion in H1’21.
GlaxoSmithKline’s profit for the period jumped to N349.35 million in the first half of 2022, a huge 482 percent from N60 million in the first half of 2021.
Investment income rose to N44.7 million in the first half of 2022, up 77 percent from N25.2 million in the first half of 2021.
Trade and other receivables climbed 11 percent to N6.28 billion in H1’22 from N5.64 billion in H1’21.
Inventories grew 18 percent to N5.2 billion in the first half of 2022 from N4.4 billion in the same period of last year.
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Finished goods in inventories increased to N5.2 billion, up 48 percent from N3.5 billion in the period ended June 2021.
GlaxoSmithKline’s selling and distribution costs jumped to N2.17 billion in the first half of 2022, up 35 percent from N1.6 billion in the same period of 2021.
Other business expenses, however, dropped 4 percent to N88.6 million in the first half of 2022 from N92.3 million in the same period of last year.
The pharmaceutical company’s total equity climbed to N9.11 billion in the first half of 2022, a 5 percent increase from N8.7 billion in the first half of 2021.
Trade and other payables rose to N17 billion in the first half of 2022, up 16 percent from N14.6 billion in the corresponding period last year.
Income tax payable jumped to N201 million, a huge 212 percent increase from N64.4 million in the first half of 2021.
Basic earnings per share stood at N29 from N5 in the period under review.
GSK plc, formerly GlaxoSmithKline plc, is a British multinational pharmaceutical and biotechnology company with global headquarters in London, England. Established in 2000 by a merger of Glaxo Wellcome and SmithKline Beecham.
