Thursday 1 June 2017

GSK laments higher input cost, reviews local manufacturing options

By Peter Egwuatu

GLAXOSMITHKLINE Consumer, GSK Nigeria Plc, yesterday, indicated that the manufacturing sector was under pressure of higher input cost forcing it to review its local manufacturing options in addressing economic and operational challenges.

Chairman of GSK, Mr. Edmund Onuzo, who made this known to Vanguard on the sidelines at the Company’s 46th Annual General Meeting, AGM in Lagos, said, “The past year was challenging, not only for our company, but also for the entire business environment. Particularly, in the third quarter of 2016, the manufacturing sector declined to minus 4.38 per cent Year-on-Year from minus 1.75 per cent recorded in the third quarter of 2015. Our shareholders will get dividend without withholding tax for the first time. Our Company will continue to review the best local manufacturing options to meet the demands of our customers. The Board recognises and would continue to prioritise local manufacturing as one of the strategic options in addressing some of the operational challenges in our environment.”

While addressing shareholders, Onuzo stated, “Despite the difficult operating environment, the Directors have decided to sustain the tradition of consistent reward to shareholders by proposing a dividend of N359 million, representing 30 kobo per share, which would not be subjected top withholding tax as it will be paid out of the retained pioneer earnings.”  The Company’s financial performance for the year ended December 31, 2016 shows that revenue dropped by 7 per cent to N14.4 billion from N15.4 billion in the corresponding period of 2015.

 

 

 

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from Vanguard News

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