GSK Nigeria's Shareholders Approve Dividend Amidst Economic Challenges

In a display of resilience and dedication, shareholders of GlaxoSmithKline Consumer (GSK) Nigeria Plc have wholeheartedly endorsed the proposal to pay a dividend of N657.73 million. The rate of 55 kobos per share, put forth by the company, received unanimous approval during the company's 52nd Annual General Meeting (AGM) held in Lagos on a bustling Wednesday.

Chairing the meeting, the esteemed Chairman of the company, Mr Edmund Onuzo, seized the opportunity to apprise the shareholders of recent developments. He highlighted that in July 2022, GSK Global successfully executed the demerger of its consumer healthcare business, thereby spawning two prominent entities – GSK Global and Haleon. As per Onuzo, GSK Global has now dedicated its endeavors exclusively to biopharmaceuticals, while Haleon, operating independently, is wholly focused on advancing consumer healthcare to make a meaningful impact on human health and deliver growth and performance that resonate with its esteemed shareholders.

Transfer of Consumer Healthcare Brands

In a striking turn of events, Onuzo revealed that the key consumer healthcare brands in Nigeria, such as Panadol, Sensodyne, Macleans, and Andrews Liver Salt, have been effectively transferred from GSK's global portfolio and now reside under the aegis of Haleon on a global scale. He further elaborated that in 2022, GSK Nigeria acted as a conduit for the distribution of both GSK's global pharmaceutical products and Haleon's consumer healthcare products within the Nigerian market.

Financial Performance Highlights

Expressing gratitude, Onuzo conveyed heartfelt appreciation to the management and employees of GSK Global, as well as the dedicated personnel at GSK Nigeria, for their unwavering collaboration and unwavering commitment in diligently shepherding the entire process.

When it came to discussing the financial performance of the company, Onuzo emphasized that it spoke volumes about its tenacity and unwavering resolve in surmounting challenges to yield favorable outcomes for the esteemed shareholders and other stakeholders. He expounded on the revenue growth of the company, which surged by an impressive 13% from N22.45 billion in 2021 to N25.38 billion in the year under review. Notably, the cost of sales experienced a parallel increase of 13% to N18.45 billion from N16.27 billion. Furthermore, the company's profit after tax for 2022 soared by a commendable 17% to N771.15 million, demonstrating a substantial improvement compared to the N658.81 million reported in 2021. Onuzo emphasized that despite the challenging business landscape, the surge in profitability exemplified a thriving and lucrative enterprise.

Board Recommends Dividend Payout

Buoyed by such promising results, the Board was delighted to recommend a dividend payout of N657.73 million, equating to a generous 55 kobos per ordinary share. The final approval, however, rests in the hands of the esteemed shareholders. Onuzo also duly informed the attendees that applicable taxes would be deducted at the time of dividend payment and duly remitted to the appropriate State or Federal tax authorities.

Peering into the future, Onuzo expressed cautious optimism regarding sustained economic growth in 2023. Nevertheless, he underscored the importance of giving due consideration to certain factors that could potentially impact Nigeria's quest for economic development. These factors included foreign exchange availability for businesses, the specter of insecurity, rampant unemployment, the high cost of doing business, and the lingering uncertainty surrounding fuel subsidy removal. Recognizing the magnitude of the impending challenges, Onuzo alluded to media reports concerning supply constraints on GSK drugs in the market. He candidly acknowledged the tremendous difficulty in procuring foreign exchange, which has hindered their ability to settle outstanding foreign currency-denominated trade payables with product suppliers, ultimately hampering their ability to maintain a consistent supply to the market. 

He further revealed that GSK UK and Haleon, as the brand owners of their esteemed consumer healthcare products, had communicated the need for the Board of Directors to engage in further deliberations with GSK Global and their trusted advisors, in order to navigate these complex circumstances. Onuzo assured the shareholders that updates would be promptly shared as these discussions progressed.

Shareholder Appreciation: Shareholders Commend GSK Nigeria's Resilience and Financial Performance Despite Economic Hardships

In response to these remarkable developments, the shareholders eagerly voiced their opinions during the meeting. Chief Timothy Adesiyan, one of the vocal shareholders, wholeheartedly commended the board and management of the company for their commendable handling of the business, as exemplified by the notable improvements in both profit and revenue during the 2022 financial year. Adesiyan astutely recognized the exceptional financial performance of GSK Plc despite the prevailing economic hardships and the diminished purchasing power of consumers. In his view, it was a testament to the prudence and foresight of the company, affirming that they had indeed made provisions for rainy days.

Another shareholder, Mr Ibekwe Roberts, joined in expressing admiration for the management of GSK Nigeria. Roberts commended the company's financial performance, highlighting the arduous macroeconomic landscape in which these achievements were realized. Such accolades underscored the company's ability to overcome challenges and thrive even under adverse conditions.

The resounding approval of the proposed dividend payment and the positive sentiments expressed by the shareholders reflect their confidence in GlaxoSmithKline Consumer (GSK) Nigeria Plc. This pioneering healthcare company has demonstrated an unwavering commitment to excellence, adaptive strategies in response to evolving market dynamics, and an unyielding focus on serving shareholders and consumers alike. Despite the prevailing uncertainties and impediments, GSK Nigeria remains steadfast in its mission to create a sustainable and prosperous future.