GSK Explains Payout of N8.4bn Special Dividend
GlaxoSmithKline Consumer Nigeria (GSK) Plc has said the recommendation of the payment of a special dividend of N8.4 billion was in line with its commitment to maximise shareholders’ returns.
GSK Nigeria had recommended a special dividend of N8.4 billion or N7.10 per share and an ordinary dividend payout of N478.4 million or 40 kobo per share, bringing the total divided to N8.878 billion or N7.50 per share.
Speaking at the 47th annual general meeting in Lagos, the Chairman of GSK Nigeria, Mr. Edmund Onuzo, said: “For us as a company, maximising shareholder’s return is high on our agenda. Given our current cash position and with money set aside for local manufacturing investment, returning cash back to investors via dividends is in line with this thinking on returns.”
According to Onuzo, following the successful divestment of the drinks business of the company, it has been able to cashin on the returns from the divestment.
“We have tightened our portfolios, drove investment behind our power brands and we are now better focused and aligned with our global business. We are glad this has yielded the right dividend particularly for our esteemed shareholders,” he said.
Reviewing the performance of the company, the chairman said revenue increased from N14.3 billion in 2016 to N16 billion, while profit before tax increased from N185 million in 2016 to N1.1billion in 2017.
He explained that in 2017, GSK upgraded its facilities across its production lines and drove various innovative projects to increase reach in order to deliver long-term growth in Nigeria. On the change in leadership at GSK, Onuzo said it was part of the leadership succession plan of the company.
He assured the shareholders that “GlaxoSmithKline is committed to Nigeria for the long term. We have confidence in the continuing growth prospects of the business and we are focused on restructuring for the benefit of all our stakeholders.”
The shareholders approved the board’s recommendation and lauded the board for its performance. The shareholders urged the management not to relent in their effort in this regard.