GSK Consumer Nigeria has reported a 7% drop in profit after tax for the nine-month period ending September 30, 2023, amid challenging market conditions and foreign exchange issues. The company's profit after tax fell to N448.09 million, largely due to unrealized foreign exchange losses of N11.29 billion. This was partially offset by realized gains of N945.05 million.
The company faced increased operating expenses which surged to N5.03 billion alongside a rise in administrative expenses to N2.67 billion. These increases were despite a slight fall in selling and distribution costs.
Revenue was primarily driven by consumer healthcare brands sales which totaled N7.99 billion, even as overall revenue and cost of sales saw a significant decline. The company also reported an increase in impairment loss on financial assets which spiked to N95.4 million.
Utility costs rose to N85.85 million while depreciation decreased for property but increased for investment property. The company's total assets and liabilities also saw a slight increase with equity reaching N9.32 billion.
Cash flows from operating activities fell to N3.77 billion while those from investing activities surged. However, financing activities resulted in a negative cash flow of N376.11 million.
Despite these challenges, the company's cash and cash equivalents increased, although basic earnings per share fell to N37. The company also registered an increase in tax paid amounting to N274.27 million.
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