Friday, May 28, 2021 / 03:38 PM / By NGX / Header Image Credit: Glaxosmithkline Consumer Nigeria Plc
GlaxoSmithKline Consumer Nigeria Plc released its 2020 Audited results for the period ended March 31st, 2021
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GSK Nigeria: Waxing Stronger Amidst Challenges
The unprecedented spread of the Coronavirus and the attendant socio-economic disruption globally dealt companies operating in Nigeria a hard blow. Againt this very challenging landscape, Glaxosmithkline Consumer Nigeria Plc (GSK) remained resolute and resilient in its approach to doing business in Nigeria.
An analysis of the Company's audited report for the year ended December showcased managerial resilience to achieve strong returns to the shareholders. According to the report, the Company's revenue grew by an impressive 3% to close at N21.3 billion year-on-year, posting a profit before tax (PBT) in excess of N1 billion. Although reflecting a dip compared to 2019, the company ended with an N622.23m profit after tax (PAT). The 3% increase in turnover was driven by growth in Sensodyne (7%), Panadol (8%), Augmentin (9%), and Amoxil (8%) and driven by the Company's route to market strategy.
What is clear is that the challenges witnessed from the latter part of Q3 to Q4 2020 impacted the GSK's Q1 result for 2021. The result showed a loss in PBT for Q1 2021.
This was majorly driven by significant challenges with product supply stability from Q3 2020 to Q1 2021. The impact of the product supply disruption especially in the Pharma segment of the business was experienced most in Q1 2021 and resulted in lower sales in this Qtr. Lower than the demand requirement during the quarter.
This drop in revenue for the discreet quarter versus the previous year is what has contributed to the loss before tax for the quarter and it was partially mitigated by a 6% improvement in operating expenses.
However, the company's leadership is fully equipped to strategically navigate the dynamics to grow its investments for efficiency and profitability with a positive performance in 2021. Market performance is expected to be impacted by macroeconomic developments at the global and domestic levels and an expected increase in the distribution of the coronavirus vaccine across the world, fixed income yields, liquidity, local investor participation, and growth in corporate earnings.
For the Nigerian economy, the Africa Development Bank (ADB) has projected a 1.5% growth in 2021 with a prospect of increasing to 2.9% in 2022 and, GSK is not losing sight of these potentials. These projections give hope for stronger performance in the forthcoming quarters.
GSK is poised to improving product supply availability and anticipates that this will drive its growth recovery in Q2 2021.
Shareholders and other stakeholders should be assured of the determination of the company at is consistently set and achieved its growth targets.
Also important to note that in April 2019, GSK signed a contract manufacturing agreement with Fidson Health Care Plc. as part of its knowledge transfer to local manufacturers' programmes. This contract manufacturing agreement trailblazes as one of the largest technology transfer in the Nigeria Pharmaceutical industry and clearly positions the company to produce locally and improve the company's effort at supporting consumers' access to health products, medicines, and vaccines across Nigeria and West Africa.