Healthcare products manufacturer, GSK Plc, on Thursday presented its audited results for the year ended December 31, 2018, showing that percentage growth in profit was faster than revenue, despite a 1,751.63% increase in other losses and the 68.57% decrease in investment income.
The directors however proposed a dividend of 50 kobo per share, an improvement over the 40 kobo paid in 2017; from earnings per share of 52 kobo, compared to the previous 41 kobo, which means the company is paying virtually all of its profit for the year and retaining nothing for current year’s operations.
Sales revenue for the period rose from N16.089bn in 2017 to N18.411bn, representing a 14.43% rise, the bulk of which was the N11.953bn from the sale of pharmaceuticals, up from N10.356bn; while N6.457bn accrued from consumer healthcare products, as against N5.732bn.
Cost of sales was constrained at N11.654bn from N11.61bn, mainly the N8.299bn from pharmaceuticals, as against N7.551bn; leaving N3.355bn to consumer healthcare, down from N4.058bn in 2017. This resulted in gross profit of N6.756bn, compared to N4.479bn reported in the prior year, a 50.84% rise.
Investment income, being interest income on short-term deposits, dropped to N380.54m from N1.195bn; while other losses soared to N634.31m from N34.26m, principally the N565.19m recorded in the pharmaceuticals segment, as N74.839m came from consumer healthcare. Specifically, the company reported N5.716m profit from sale of property, plant and equipment, compared to N119.475m in 2017; realized foreign exchange losses stood at N350.355m from N504.033m; while unrealized forex losses climbed to N412.026m, from the N386.571m reported in 2017.
Selling and distribution costs for the period increased by 13.42% from N2.73bn to N3.096bn; just as administration expenses notched 25.74% up from N1.786bn to N2.246bn in 2018.
Profit before tax inched 3.19% from N1.124bn to N1.16bn. Note that in the past two years, the company has no done exceedingly well in its twin core operating segments, reporting profit only because its non-operational income has stayed positive. In 2017, non-operation income amounted to N1.841bn, while consumer healthcare and pharmaceuticals segments suffered N701.96m and N15.521m respective. There was however an improvement last year, as the company’s recorded N886.397m PBT, as the consumer healthcare business posted N112.495m profit.
Profit after tax for the period under review grew by 26.97% from N486.43m to N617.62m.
Qualification date for the dividend is May 22, 2019, following which the books will be closed from April 23 to May 3; while shareholders are billed to consider and possibly approve the dividend at the Annual General Meeting on May 23, while payment is on May 24.