GlaxoSmithKline Consumer Nigeria Plc
has declared a N717.5 million dividend for the 2014 financial year, just as
shareholders of the company approved the one for four bonus shares proposed by
its Board of Directors.In the year under review, the
company recorded a turnover of N30.52 billion growing 5 per cent over the
previous year.
Profit before tax at N2.75billion and profit after tax at N1.85
billion declined over the previous year by 36 per cent and 37 per cent
respectively. Total assets grew from N26.2 billion to N27.96 billion during the
year ended December, 2014.
Speaking at the 44th Annual General
Meeting held in Lagos, Chairman, Board of Director, GSK, Mr. Edmund Onuzo,
highlighted some of the challenges faced by its business in the year under
review to include:
a drop in Nigeria’s crude oil
production which was aggravated by the drop of crude oil prices; insecurity,
especially the incessant violence in the Northern states and sporadic cases of
kidnapping for ransom;
the Nigerian Stock Exchange ending
year on a negative note as a result of collapse in world oil prices; among
others.
According to him “While operating
expenses were well managed, the company recorded an exchange loss of N893
million as a result of the naira devaluation by the Central Bank of Nigeria,
CBN in the first quarter of 2014. Furthermore, an increase in cost of goods
sold of N1.234 billion as a result of the sale of brands by the GSK group to
Lucozade Ribena Suntory, added to the decline in profit.”
Onuzo noted that another major
challenge encountered in the year was the healthcare sector outbreak of the
dreaded Ebola Virus Disease (EVD) and industrial actions by health workers due
to alleged insincerity on the part of government. According to him “The
incidence of counterfeits and parallel imports continues to be a big challenge
to the business and our ability to ensure we deliver products of value,
especially the pharmaceuticals to our consuming public.
During the year GSK continued to
work with the regulatory agencies including NAFDAC and customs to stem the
unfortunate menace of counterfeit fake and parallel imports.” Onuzo however
said that for the company to be successful, it must confront and overcome identified
risks to its growth and profitability in the next 12 months.
He said “Our winning strategy for
the coming years must include a strategic re-design of our Route to Market
(RTM) with portfolio focus to build momentum behind drinks, invest in key SKUs
(PET, 150ml), drive deeper and wider penetration and strengthen the non-drinks
portfolio.
“The company would also focus on a
commercial model ensuring distributor margin and investment aligned to support
growth. We must as a mater priority continue to invest in talent to build
demand generation and efficiency, deepen our demand planning capability and
route to market expertise.”
“We would continue to strengthen our
customer marketing intelligence and to build strategic alliance with our
distributors pan Nigeria to ensure reach and penetration” he added
#Providence_Obuh #Brand_NewsNigeria
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