According to GlaxoSmithKline Nigeria Plc's recently released financial statement for 2023, the company's profit dropped by 33.76% to N510.80 million in 2023 from N771.15 million in the previous financial year.
The company announced this in a notice filed with the Nigerian Exchange Limited on Tuesday in its unaudited, condensed, consolidated, and separate financial statements. The fall in revenue stood at N16.44bn in 2023, less than the corresponding year, which stood at N25.38bn in 2022.
During the period under review, GlaxoSmithKline Nigeria Plc's cost of sales stood at N10.35bn, which was lower than the previous year, mitigating the impact of the expenses on the gross profit, which stood at N6.09bn.
In August last year, GlaxoSmithKline Consumer Nigeria announced that it would shut down its operation in Nigeria following the announcement of its parent company, GSK Plc UK, which announced its plans to stop commercialising its prescription medicines and vaccines through its Nigerian subsidiary.
The statement partly reads,
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 suspended trading in the company's shares.
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, composed of antibacterials, vaccines, and prescription drugs, recorded a loss of N679.94 million.
About GSK Nigeria
GSK Nigeria was founded in 1971. Over 46.4% of the company's shares are held by Setfirst Limited and Smithkline Beecham Limited; Nigerian shareholders have 53.6%.