GlaxoSmithKline, in its latest financial result recorded a 232 percent increase in investment income to N310.3 million, the highest in the last four years.
The increase in investment income was spearheaded by 232 percent increase in interest income from short term deposits to N310.3 million in 2022 from N93.5 million in 2021.
GlaxoSmithKline’s revenue amounted to N25.4 billion in 2022 on the back of pharmaceuticals (N16.8 billion) and consumer healthcare (N8.6 billion). The 13.4 percent growth in revenue was coming from N22.4 billion in 2021.
However, the firm recorded a 17 percent decline in revenue to N4.97 billion in the fourth quarter of 2022 from N6 billion in the same period of 2021.
GlaxoSmithKline’s cost of sales grew 18.4 percent to N19.3 billion where N12.9 billion was allocated to pharmaceuticals while N6.4 billion was allocated to consumer healthcare in December 2022.
Consequently, the firm’s cost of sales dipped 2.4 percent to N4.1 billion in the fourth quarter of 2022 from N4.2 billion in the similar period of 2021.
Profit after tax
GlaxoSmithKline’s profit after tax grew slightly by 5 percent to N692.1 million in 2022 from N658.8 million in 2021 which can be attributable to high input cost environment and further devaluation of the Naira.
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On a quarter on quarter basis, the firm recorded a 61 percent decline to N208.5 million in the fourth quarter of 2022 from N536.1 million in the fourth quarter of 2021.
Cost of doing business
GlaxoSmithKline’s operating cost stood at N5.4 billion in 2022 driven by selling and distribution costs which amounted to N3.6 billion and N1.8 billion administrative expenses during the period.
The operating cost climbed 2 percent to N5.4 billion in 2022 from N5.3 billion in 2021.
Selling and distribution costs recorded 2.9 percent growth to N3.6 billion in 2022 from N3.5 billion in 2021 while administrative expenses stood at N1.8 billion year-on-year in the period reviewed.
On a quarter on quarter basis, selling and distribution costs dropped 5.2 percent to N752.6 million in 2022 from N794 million in 2021. Also, administrative expenses dropped 25 percent to N216.5 million from N288.6 million in the reviewed period.
Stable liquidity
GlaxoSmithKline’s cash and cash equivalents jumped to N19.98 billion, 57 percent increase from N12.75 billion which indicate that the firm has enough cash or liquidity to cover its short-term liabilities.
Net cash generated by operating activities amounted to N7.12 billion in 2022 from N364.6 million in 2021.
Net cash flows generated by investing activities stood at a positive of N353.6 million from a negative of N126.99 million in the period reviewed.
Net cash flows used in financing activities amounted to a negative year on year to N244.8 million from N376.6 million in the comparable period.
Profit attributable to shareholders/Earnings per share
The firm’s profit for the period attributable to shareholders of the company increased by 5 percent to N692.1 million in 2022 from N658.8 million in 2021.
On a quarterly basis, the profit for the period attributable to GlaxoSmithKline shareholders amounted to N208.5 million, a 61 percent dip from N536.1 million .
Basic and diluted earnings per share rose to N58 per share in the full year of 2022 from N55 per share in the full year of 2021.
However, the basic and diluted earnings per share dropped to N18 per share from N45 per share on a quarterly basis.
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