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GSK reports 33.7% drop in profit following exit from Nigeria

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GSK reports 33.7% drop in profit following exit from Nigeria

 

GlaxoSmithKline (GSK) Consumer Nigeria Plc’s has reported 33.76 per cent profit decline to N510.80m in 2023, from N771.15m in the previous financial year.

The unaudited condensed consolidated and separate financial statements of the company filed with the Nigerian Exchange Limited on Tuesday showed that the firm recorded a drop in its revenue to N16.44bn from N25.38bn in 2022.

GSK had announced the winding up of its operations in the country.

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During the period under review, the cost of sales was N10.35bn, lower than the previous year, mitigating the impact of costs on the gross profit, which stood at N6.09bn.

In August, GSK Nigeria announced plans to shut down its operations in the country after its parent company, GSK Plc UK, revealed its intent to cease commercialising its prescription medicines and vaccines through its Nigerian subsidiary.

Part of the statement read, “In our published Q2 results we disclosed that the GSK UK Group has informed GlaxoSmithKline Consumer Nigeria PLC of its strategic intent to cease commercialisation of its prescription medicines and vaccines in Nigeria through the GSK local operating companies and transition to a third-party direct distribution model for its pharmaceutical products.”

Following regulatory approvals, the NGX had already suspended trading in the shares of the company.

GSK is one of the multinationals that had indicated interest in exiting Nigeria.

Its latest financial report revealed that the consumer healthcare business segment consisting of oral care, and over-the-counter medicines recorded a profit of N1.89bn. In contrast, the pharmaceuticals segment consisting of antibacterial, vaccines and prescription drugs recorded a loss of N679.94m.

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