Healthcare and pharmaceuticals maker- Glaxo SmithKline Consumer Nigeria, on Friday, presented its audited result showing that despite the N799m or 18.97% rise in sales revenue in the first quarter ended March 31, 2019, profit before and after tax fell by 59.57%.
Apparently, in its bid to reduce cost and shore up its bottom-line, the company recently announced plans to sell its Agbara, Ogun State manufacturing facility, following which Fidson Healthcare has been selected as contract-manufacturer of its various brands beginning from 2023 (READ MORE).
Revenue for the period increased to N5.013bn from N4.214bn; and cost of sales from N3.002bn in 2018Q1 to N3.537bn, representing a rise by N535.679m or 17.84%; following which gross profit increased by N263.821m or 21.76% from N1.212bn to N1.476bn.
The pharmaceuticals operating segment contributed N3.496bn and N2.653bn respectively to revenue and cost of sales respectively; while consumer healthcare, N1.517bn, and N884.689m. In the 2018Q1, pharmaceutical segment pooled N2.753bn and N2.083bn in turnover and cost of sales respectively; while consumer healthcare contributed N1.46bn and N918.368m
Investment income for the period increased marginally from N57.042m to N57.335m; other losses stood at N164.476m, compared to the N317.948m gains recorded in the corresponding period of 2018. Selling and distribution costs increased from N658.103m in the prior Q1 of 2018, to N800.562m; just as administrative expenses fell from N560.11m to N417.689m.
Profit before tax dropped from N368.989m to N150.641m, after the consumer healthcare segment posted N130.056m loss, a slight improvement from N172.861m in 2018. This suppressed the impact of the N222.776m profit from the pharmaceutical segment, which also fell from N484.808m in the prior Q1.
The company’s number was also boosted by the N57.921m profit from the investment income and other gains.
Net profit was prevented from falling lower by the drop in income tax expenses during the period from N110.697m to N48.205m. Net profit, therefore, stood at N102.436m, down by N153.856m from the N258.292m reported in 2018Q1. Earnings Per Share slumped to nine kobo, from 22 kobo in the preceding Q1.