GSK Consumer Nigeria earnings sink amid FX loss
GlaxoSmithKline Consumer Nigeria Plc (“GSK Consumer Nigeria Plc”) on Friday reported a net loss of N4bn for the 9-months ending 30th September 2016.
The company which in October finalized the sale of its drinks business (Lucozade and Ribena) including bottling and distribution to Suntory Beverage and Food Nigeria Limited cited unrealized foreign exchange loss of N6.5bn caused by the impact of Naira devaluation for its poor performance.
GSK said that revenue for the 9-months to September declined 11% to N20.5bn, from N23.5bn in the previous year, but it would be the 891% jump in foreign exchange loss that pushed it into the negative column. The company also revealed that it realized a net gain of N2.3bn from the sale of its drinks business to Suntory. If it had not been for the gain, the loss would have been N6.2bn.
With the drinks business sold, what is left of GSK Consumer Nigeria is its healthcare business (retained business) which will consist of the consumer healthcare wellness, oral healthcare, nutrition categories and the pharmaceutical business – with brands including Sensodyne, Macleans, Panadol, Horlicks, Andrews Liver Salts, Voltaren, Otrivin and CAC 1000.