• Friday, March 29, 2024
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BusinessDay

GSK’s Q4 revenue surges 12.8% reveal plans to split into two companies  

GSK, FIDSON

Consumer healthcare company, GlaxoSmithKline (GSK) Nigeria Plc’s 2019 full-year revenue increased 12.8percent to N20.78bn from N18.41bn. The company’s cost of sales surged 20.5percent to N15.05bn from N12.48bn leaving gross profit at N5.73bn from N5.92bn.

Selling and distribution expenses jumped 7.4percent to N3.28bn from N3.1bn while Administrative expenses dropped to N1.92bn from N2.24bn. Profit Before Tax for the period stood at N605million from N617million.

Revenue from consumer healthcare segment which consists of oral care, over-the-counter (OTC) medicines and nutritional healthcare; stood at N6.27bn from N6.45bn, the segment also recorded a profit of N214million from a loss of N255million in 2018. Revenue from Pharmaceuticals segment consisting of antibacterial, vaccines and prescription drugs, stood N14.50bn from N11.95bn

Preparing for two new companies

The GSK UK, its parent company announced a two-year separation programme to split GSK into two companies new GSK, a biopharma company with an R&D approach focused on science related to the immune system, use of genetics and new technologies; and a new leader in Consumer Healthcare.

According to the management, the program targets the  delivery of £0.7 billion of annual savings by 2022 with total costs estimated at £2.4 billion (of which £1.6 billion cash).

The Programme expected to deliver improved operating performance, with meaningful improvements from 2022.

Anticipated divestment proceeds largely expected to cover programme cash cost. With additional one-time costs to prepare Consumer Healthcare for separation estimated at £600-700 million.

Emma Walmsley, Chief Executive Officer, GSK said the company has made excellent progress in all three of its long-term priorities: Innovation, Performance, and Trust strengthening pipeline, improving operational execution and reshaping the company.