After Tax, GlaxoSmithKline still generates N623.02m as Profit

In celebration of its 50th anniversary in Nigeria, GlaxoSmithKline Consumer Nigeria Plc announced a profit after tax of N623.01 million for the year ended December 2020. At the Company’s 50th Annual General Meeting in Lagos, shareholders approved a dividend of N657.7 million at a rate of 40k per share.

The results also revealed that the company’s turnover increased by 3% to N21.3 billion in 2019, compared to N20.7 billion in 2019.

Mr. Edmund Onuzo, Chairman, Board of Directors at GlaxoSmithKline Consumer Nigeria Plc, said the company is determined to achieve a sustainable performance across all of its portfolio despite the challenging economic environment, particularly for manufacturers in the country, when presenting the results to shareholders.

“The year 2020 presented a difficult and unpredictable business environment globally. In Nigeria, many events shaped our business environment, but I will like to focus on a few. My focus will include the unprecedented lockdowns due to the COVID-19 pandemic,insecurity and the #EndSARS protest that took place towards the end of the year” Onuzo said.

He added: “the unpredicted impact of the COVID-19 pandemic slowed Nigeria’s economic recovery as the country went into a recession for the second time in five years, after the marginal economic growth noticed before 2020. Despite these challenges, Mr. Onuzo declared that the task before the company is to drive its strategic objectives that would not only keep the business afloat but make its portfolio more efficient and profitable.

The performance of our Company in 2020 reflected our determination to remain strong and deliver value to our esteemed customers and stakeholders in a challenging economic climate. We will continue to invest in our brands and our people to achieve sustainable growth and development”, Onuzo assured.

Regarding the government’s intervention for businesses from a macroeconomics standpoint, Onuzo said: “it is heart-warming to acknowledge that the federal government is making efforts to diversify the Nigerian economy from a monopolistic economy that largely depends on oil revenue.”

The COVID-19 pandemic has taught governments and policymakers around the world to be ready for anything and to plan ahead of time for their societies, as it has become a necessary collective responsibility in this era.

Kunle Oyelana, Managing Director, GlaxoSmithKline Consumer Nigeria Plc, said the company’s performance for the year was a result of collaborative support from all key stakeholders in the healthcare delivery subsector.

GSK has remained Nigeria’s leading healthcare company for the past 50 years, according to Oyelana, enabling Nigerians to do more, feel better, and live longer through our Pharmaceuticals, Vaccines, and Consumer Healthcare products.

This year’s performance builds on our outstanding achievements in R&D and innovation, as well as the delivery of high-quality healthcare products.

“We have experienced sustained growth in our business operations centered on our three business areas of Pharmaceuticals, Vaccines and Consumer Healthcare while we have also maintained some initiatives that have continued to generate impacts by creating shared values in our communities”.

“We are pleased with the results for 2020 as it showed the resilient spirit of the GSK team. Importantly, we at GSK were able to support the government’s efforts at managing COVID-19 in Nigeria via donations of Personal Protective Equipment (PPEs) through industry associations and our partners, Save the Children”, Oyelana said.

While congratulating the management and praising the company for growing stronger over the last 50 years despite a difficult business environment, Chairman of the Audit Committee Kashimawo Taiwo stated that the shareholders are pleased to approve the payment of a 40 kobo dividend, noting that the shareholders recognize that the time is difficult and that the year 2020 has been very challenging, and that “a lot of companies faced a lot of challenges.”

“The operating environment has been very harsh, so for the company to come out with an increase in turnover has been a great effort for them,” Taiwo said. “And for them to give us the 40kobo dividend, it is very encouraging for every shareholder, and we really appreciate that.”

GSK delivered a strong performance in 2019, with sales, earnings, and cash generation all increasing, and this strength has been replicated in the 2020 results.