GlaxoSmithkline Consumer Nigeria plc (GSK Nigeria) has announced a strong growth in its audited results for the year ended 31 December 2014, even as it approved bonus shares for its shareholders.

The company also declared a N717.5 million dividend for its shareholders for the year ended December 2014.

Speaking at the 44th Annual General Meeting (AGM) held in Lagos, Edmund Onuzo, Chairman GSK Nigeria Board of Directors stated that although the year 2014 was challenging, the company remains committed in ensuring shareholders get the best returns on their investments.

“While operating expenses were well managed, the company recorded an exchange rate loss of N893 million due as a result of naira devaluation by the Central Bank of Nigeria (CBN) in the last quarter of 2014.

“Furthermore, an increase in cost of goods sold of N1.234 billion as a result of the sale of brands by GSK Group to Lucozade Ribena Suntory (LRS), added to the decline in profit.” Onuzo said.

“Despite the decline in profitability, the board will be recommending a dividend of 717.50 million to be paid to shareholders, representing N75k per share, subject to appropriate withholding tax deduction. A bonus issue of one new share for every four existing shares was recommended for approval during this meeting.”

Company’s Financial Highlights

In the year ended 2014, the company recorded a revenue of N30.52 billion, growing 5 percent over the previous year. Profit before tax was N2.75 billion and profit after tax stood at N1.85 billion, a decline over the previous year by 36 percent and 37 percent respectively. Total assets grew to N27.96 billion from N26.2 billion during the year 2014.

The Chairman of the firm promised to continue to innovate and meet changing consumer needs. “In 2014, the company focused on growing new businesses and building deeper brand equity with introduction of new products such as the recently reintroduced Horlicks drink, among others.”

In the words of the Chairman, “We will continue to deploy appropriate marketing strategies and retool our route to market model to focus more on the different categories of our diverse businesses. Furthermore, the company is committed to continued investment in commercial and factory operations.”