Glaxosmithkline forecasts decline earning
Glaxosmithkilne Plc has forecasted significant reduction in the company’s earnings for the half year ended 30th June, 2012.
In its financial statement submitted to the Nigeria Stock Exchange, the company’s forecast earnings for the period showed that the directors have marked the turnover down to N6.249 billion, while the profit after tax is expected to stand at N590.797 million during the period.
The company had achieved a turnover of N10.184 billion in the same period of 2011 and N1.132 billion in profits which represents 38.64 per cent and 59.8 per cent reductions in gross earnings and profit after tax respectively.
It would be recalled that the chairman, Olusegun Osunkeye, had at the last general meeting with shareholders hinted that the profit for the current year may be eroded due increasing cost and expenditure.
He said, “As part of our strategy, we will be targeting a favorable top line growth this coming business year; despite that profitability may come under some pressure due to significant increases in costs of doing business as well as investments behind advertising and promotions to support the brands.”
He however, assured that despite the challenges, “The company is poised to reach its set goals despite the environmental challenges and restrictions,” promising that the company would continuously boost its business through geographic expansion, market excellence, introduction of innovative products and strong focus on its staff and consumers in the next five years.
Osunkeye explained that in 2010, GSK undertook an exciting variety of projects, ranging from new product introduction and repackaging of existing brands, amongst others. This trend has continued in 2011 with the introduction of Sensodyne, a premium toothpaste brand while others in the pipeline include Macleans Milk Teeth for children, Macleans intense whitening, Lucozade 150ml, and horlicks sachet, amongst others.