GlaxoSmithKline Reports 30.66% Drop in Revenue to ₦3.46Billion in Q1 2021

GlaxoSmithKline Consumer Nigeria Plc (GSK) recently published its unaudited first quarter Q1 2021 consolidated financial statements for the period ended 31 March 2021.

GlaxoSmithKline’s Group revenue dropped from ₦4.99 billion in Q1 2020 to ₦3.46 billion in Q1 2021 a drop of 30.66%. The revenue drop was due to a sharp decline in the local sale of its healthcare products.

GSK is a public limited liability company incorporated in 1971 and domiciled in Nigeria where its shares are publicly traded. 46.4% of the shares of the Company are held by Setfirst Limited and SmithKline Beecham Limited (both incorporated in the United Kingdom), and 53.6% by Nigerian shareholders.

Key financial highlights:

• Loss after tax as of Q1 2021 was ₦238.07 million compared to a profit after tax of ₦113.47 million for the same period to Q1 2020.
• The healthcare segment was largely profitable in Q1 2021 (making a profit before tax of ₦ 8.73 million by March 31, 2021
• The pharmaceuticals segment made a loss of ₦262.93 million in the same period.

The ultimate parent and the ultimate controlling party is GlaxoSmithKline Plc, United Kingdom (GSK Plc UK). GSK Plc UK controls the Company through Setfirst Limited and SmithKline Beecham Limited.

Owing to the financial performance in Q1, the company’s earnings per share (EPS) dropped to 20 kobo compared to the 9 kobo earnings per share reported in Q1 2020. At the start of 2021, GSK Plc’s share price was ₦6.90 but the company has since lost over 10% of its price valuation as the company’s share price closed at ₦6.20 on April 30, 2021.