GSK shareholders approve N359m dividend, commend divestment

Shareholders of GlaxoSmithkline (GSK) Consumer Nigeria Plc has approved a dividend pay-out of N359 million for the year ended 2016, while commending the company on a successful divestment of its drink business, Lucozade and Ribena.

At the company’s 46th Annual General Meeting (AGM) on Wednesday in Lagos, shareholders unanimously approved a dividend pay-out representing 30 kobo per ordinary share, while applauding the GSK board of Directors for keeping up the practice of giving shareholders returns for their investments in the company.

Anthony Omojola of the Independence Shareholders Association of Nigeria (ISAN) said the company had done well with the business of divestment which had shored the company’s profit, as well as helped in reducing the company’s debt, adding that giving out dividend at this period was highly appreciated by shareholders.

He also appreciated the parent company for the credit notes of N5.5 billion given to GSK in two categories during the fourth quarter in 2016.

Igbrude Moses, another shareholder, while appreciating the turnouts of the divestment, urged the company improve on its products, among other things in order to sustain the profits ffrom the divestment.

The Chairman of GSK Consumer Nigeria Plc earlier in his remarks said the objective of the divestment was to enable the company align with its global business, focus on its core competence of healthcare and to drive a more nimble organisation.

“The immediate impact of this change was an 11 per cent decline in revenue to N20.5 billion. I must assert, however, that the divestment delivered positive outcomes which include the drastic reduction of inter-company debts, and aforementioned opportunity to focus on our coe healthcare business and create a new, agile organisation,” he said.

He added that the Board recognised and would continue to prioritise local manufacturing as one of the strategic options in addressing some of the operational challenges in our environment, noting that following the divestment, the company retained 35 per cent of the manufacturing site, to be used for production, while “we continue the ‘factory in a factory’ arrangement to ensure continuity. Our strategy will be continues to improve our local manufacturing capabilities.”

Looking forward, the Chairman noted that with the divestment over, the company has started implementing strategies and realignment to take advantage of the opportunities for growth ahead.

He added that the future of the company is promising despite operating at a challenging period, while urging all stakeholders to work collectively to position the company as one of the best healthcare companies in Nigeria.

It will be recalled that on 330th September, GSK Cosumer Nigeria Plc concluded the disposal of the Drinks Business, Lucozade and Ribena, to Suntory Beverages and Foods Nigeria Limited in a deal worth N15.7 billion.