GSK Nigeria reports 3.2% increase in PBT to N1.16bn, proposes N0.50 dividend

GlaxoSmithKline Consumer Nigeria Plc (GSK) has reported 3.2 per cent in Profit Before Tax (PBT) for the financial year ended December 31, 2018.

The pharmaceutical company in its report to Nigerian Stock Exchange (NSE) on Thursday said PBT hits N1.16 billion in 2018 financial year as against N1.12 billion reported in 2017.

The growth in PBT was driven by a 12.6 per cent increase in revenue and a drop in the cost of sales amidst an increase in total operating expenses.

On the heels of growth in profit, the board of GSK recommended a dividend of N0.50 kobo, representing 50kobo per ordinary share subject to shareholders’ approval.

The international pharmaceutical company reported a 12.6 per cent increase in revenue to N18.1 billion as against N16.1 billion reported in 2017.

Also, the cost of sales dropped by 28 per cent to N11.6 billion in the year under review from N16.1 billion reported in prior year performance.

Findings by our correspondent revealed that total operating expenses rose by 18 per cent to N5.34 billion in 2018 from N4.5 billion reported in 2017.

The breakdown of total operating expenses revealed that selling and distribution cost rose by 13 per cent to N3.1 billion from N2.73 billion in 2017 while administrative expenses increased by 26 per cent to N2.25 billion in 2018 from N1.79 billion reported in 2017.

Interestingly, the company in its results reported a drop of about 68per cent in investment income to N380.5 million as against N1.2 billion reported in 2017.

Further findings by Nigerian NewsDirect revealed that the company unclaimed dividend in its book as at December 31, 2018 was N1.5 billion.

The company explained that “We were in respect payments 31 to 42 of the shareholders of GSK Nigeria and its legacy companies.

The company continues to take steps in conjunction with registrars, to ensure the shareholders receive their dividend.”