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GlaxoSmithKline grows profit by 335 percent

 GlaxoSmithKline Consumer Nigeria Plc has reported a 335 percent increase in its profit after tax for the 2016 financial year.

The company’s audited account, submitted to the Nigerian Stock Exchange on Tuesday showed that profit rose from N965 million in 2015 to N4.2 billion in 2016 on the back of profits from the divested drinks business of N1.8bn and N2.4bn (including the effect of tax credit) from continuing operations while revenue of N14.4 billion was 7 percent lower than N15.4 billion in 2015

GSK Nigeria also announced plans to reward shareholders for their continued confidence in the company, as the Board of Directors will be recommending to members a dividend of N359 million which represents 30 kobo per ordinary share, to be approved by shareholders at the 46th Annual General Meeting scheduled for 31st May 2017.

According to a statement from the company, ‘The Board and Management would like to express its gratitude to key stakeholders including shareholders, regulators, staff, GSK UK and the media for their support during a very difficult phase of the Company’s existence and look forward to more years of growing value for the benefit of all.

The leading fast moving consumer healthcare company, further reiterated its commitment to broadening its range of health-care products and widening distribution to boost sales after a challenging economy in 2016 and the disposal of its drinks business slashed its revenue.

The company will now focus on its OTC, Oral Health care and Pharmaceutical business with the aim of driving improved margins and sustainable growth in Nigeria.

Although the year was a very challenging one with a significantly unstable macro-economic environment and decline across all relevant categories, however the company has assured stakeholders that despite the challenging economy and the divestment, the company is better positioned for growth. GSK Consumer will now be able to focus on the pure consumer healthcare segment and enhance its brand portfolio in healthcare products and be better aligned to the Global GSK strategy of being a thoroughbred consumer healthcare company”.

Following the divestment of its drinks business, GSK has continued to fine-tune its route to market strategies to ensure reach and availability across all platforms and is focusing on driving efficiencies through consolidation in its supply chain operations, as well as its operating model.

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