GSK Consumer Nigeria posts 37% profit decline in the latest quarter

GlaxoSmithKline Consumer Nigeria Plc, the company behind beverage brands Lucozade and Ribena, among others, said on Thursday that its net income for the period January – March 31 2016 declined 37% to N188m, from N297m in the same quarter a year earlier.

However, the beverage and healthcare company saw a slight lift of 2.5% in sales for the quarter to N7.6bn, from N7.5bn a year earlier.

Cost of goods sold for the period climbed 15% to N5.2bn, from N4.5bn in the previous quarter.

GSK Nigeria’s revenue and profits continues to be impacted by competition and weak consumer spending brought on by macro-economic headwinds. The company announced in January that it had received a non-binding offer from Suntory Beverage & Food Limited (SBF), a Japanese beverage company to buy their beverage unit (Ribena, Lucozade and part of their Agbara, Ogun State plant). Discussions between both firms are still continuing.

GSK Consumer Nigeria is a unit of GlaxoSmithKline of the United Kingdom. The company makes a wide range of products in three business segments – Beverages, which includes Lucozade, Ribena, Blackcurrant and Horlicks drinks; Wellness products such as Panadol; and Oral Healthcare products, which includes Macleans and Sensodyne toothpaste.

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