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GSK, Morison, Neimeth cut input costs amid rising prices

GSK, Morison, Neimeth cut input costs amid rising prices

GlaxoSmithKline (GSK) Consumer Nigeria Plc, Neimeth International Pharmaceuticals Plc and Morison Industries Plc are the three pharmaceutical firms on the Nigeria Exchange Limited that recorded a decline in their cost of sales last year, a BusinessDay analysis shows.

GSK recorded a 43.8 percent decline in its cost of sales to N10.4 billion in 2023 from N18.5 billion in 2022 while that of Neimeth fell by 30.1 percent to N1.46 billion, according to their unaudited financial statements. Morison Industries’ cost of sales reduced by 9.2 percent to N118.9 million.

Other firms like Fidson Healthcare and May & Baker saw their cost of sales rise by 45.4 percent and 24.8 percent respectively.

Further analysis of the statement shows that the five drugmakers recorded a combined input cost of N59.2 billion, up from N54.7 billion.

Analysis of data from individual firms

Fidson Healthcare

Fidson Healthcare’s cost of sales grew to N34.1 billion in 2023 from N23.45 billion in 2022.
It reported a 30.7 percent increase in its revenue to N53.1 billion while after-tax profit declined to N3.28 billion from a profit of N4.19 billion in 2022.

The company manufactures and sells pharmaceutical and nutraceutical products in Nigeria including over-the-counter, ethical, and consumer products. The company produces various drug classes for antacid and ulcer care, anti-diabetic, anti-malaria, anti-diarrhea, anti-psychotic as well as foster-care, pain relief, colds and flu, thrombo-prophylactics, and cardio-vascular products.

May & Baker

May & Baker’s cost of sales rose to N13.1 billion in 2023 from N10.5 billion in 2022.

It recorded a 37.7 percent rise in revenue to N19.7 billion while after-tax profit dropped to N985.6 million from an after-tax profit of N1.49 billion.

The firm is a Nigerian-based pharmaceutical company involved in the manufacturing, selling, and distribution of human pharmaceuticals, human vaccines, and consumer products.

GSK Nigeria

GSK Nigeria’s cost of sales dipped to N10.4 billion in 2023 from N18.5 billion in 2022.

The company recorded a 35.4 percent drop in its revenue to N16.4 billion while after-tax profit dropped to N510.8 million from a profit of N771.2 million.

It manufactures and markets a range of consumer healthcare and pharmaceutical products in Nigeria. Its product portfolio includes treatments for asthma, HIV/AIDS, malaria, depression, migraines, diabetes, heart failure, digestive ailments, and cancer.

Some of its consumer healthcare products include oral healthcare products; wellness products for the management of pain, gastrointestinal and respiratory conditions; multivitamins; and a range of nutritional healthcare beverages.


Neimeth cost of sales declined to N1.46 billion in 2023 from N2.09 billion in 2022.

The company recorded a decline in revenue to N2.21 billion from N3.46 billion while after-tax loss stood at N2.58 billion from an after-tax profit of N19.1 million.

It is a publicly listed pharmaceutical company founded in 1997 and headquartered in Lagos. It was established by a former managing director of Pfizer Products of Nigeria to acquire some of the trading assets of Pfizer International in Nigeria.

Morison Industries

Morison Industries cost of dropped to N118.9 million in 2023 from N131.3 million in 2022.

The company’s revenue dropped to N145.2 million from N154.8 million while Morison recorded an after-tax loss of N89.4 million from an after-tax loss of N107.5 million.

It manufactures and markets a range of pharmaceutical and hygiene products in Nigeria as well as imports and distributes medical, surgical, and hospital consumables.